The age of the AI transformation is upon us, driven by profound breakthroughs in AI technology. Entire industries and societies are poised for disruption by innovations such as ChatGPT, with the United States standing at the forefront of this transformation. Yet these extraordinary strides come with a formidable challenge: the explosive demand for energy to power the AI data centers that enable such growth. According to Reuters, energy consumption by AI data centers in the US is expected to triple by 2028, accounting for as much as 12 percent of the nation’s total electricity supply.
Given this significant strain on the power grid, nuclear energy is becoming more critical as a key energy source to address this challenge. Unlike intermittent renewables such as wind and solar, nuclear power offers a stable, continuous supply capable of satisfying the demand of energy-intensive infrastructures such as AI data centers.
Despite this potential, however, nuclear power plant construction in the US is progressing much more slowly than expected. Plant Vogtle in Georgia, for instance, was delayed by over seven years with excess costs ballooning to about $20 billion, while the VC Summer expansion project in South Carolina was abandoned at 40 percent completion after drawing investments worth $10 billion. Similar setbacks have plagued nuclear projects in other nations. Electricite de France’s Flamanville 3 in France and Finland’s Olkiluoto 3 suffered delays extending over a decade and costs exceeding the tens of billions. These cases highlight the complexity and unpredictability of nuclear projects, underscoring the need for more efficient and cost-effective alternatives.
On the other hand, South Korea is globally recognized for its competitive nuclear power plant construction. What the nation brings to the table is its unparalleled ability to deliver projects on time and on budget. The successful completion of four APR-1400 reactors for the Barakah Nuclear Power Plant in the UAE within the agreed timeframe and budget stands as a testament to South Korea’s efficient supply chain management and robust project execution. By working together, South Korea and the US can alleviate uncertainties in construction and execute stable, cost-effective nuclear projects.
Moreover, strengthening nuclear cooperation between the US and South Korea is essential for energy security. The US currently relies on Russia for 25 percent of its enriched uranium -- a clear vulnerability in its nuclear supply chain that can be readily addressed through Korea-US cooperation. Resuming the High-Level Bilateral Commission on nuclear energy would be a critical step in that direction. The HLBC serves as the official platform for coordinating bilateral nuclear policies, engaging in far-reaching discussions on technological cooperation, supply chain stabilization and nonproliferation. Jumpstarting these talks will enable our two nations to successfully complete nuclear projects on the basis of our close cooperation while solidifying our leadership in the future nuclear market.
If the US and South Korea cooperate, the two nations could not only secure leadership in nuclear construction within the US but also in the global market. With the US providing the technological expertise and funding, and South Korea demonstrating its proven capabilities in engineering, procurement and construction, we can ensure the effective rollout of large-scale light-water reactors and small modular reactors. Not only will this partnership guarantee reliable energy that is so crucial in the era of AI but it will also help respond to the growing global demand for nuclear power.
US-South Korea nuclear cooperation will be a strategic alliance that goes beyond mere industrial collaboration, helping to design the energy security and economic future of both nations. The revival of the HLBC will be a vital step toward advancing this collaboration and resolving the energy demand in the Age of AI while positioning both nations as leaders in the global nuclear energy industry.
Kim Jong-hoon
Kim Jong-hoon is chair of HanmiGlobal. The views expressed here are the writer's own. -- Ed.
