Business · Companies · 37 mins ago
Korea-US nuclear plan faces scrutiny over $10 billion advance
South Korea and the United States agreed to a plan for eight large nuclear reactors on US soil, with construction contracts due to be pursued in stages.
The plan includes up to $10 billion in advance payments to secure major equipment whose design and delivery can take years.
Critics in South Korea say tighter US rules for AI data centers could weaken demand for the electricity the reactors would produce.
Democrats won in Ohio and South Carolina, two states mentioned as possible reactor locations, and have raised concerns about power-grid strain, electricity bills and water use from data centers.
South Korea's industry ministry argues that nuclear plants could supply power alongside data centers and help ease local concerns about higher bills.
US officials are expected to identify candidate sites after the midterm elections, after which South Korea plans to assess grid connections and potential long-term buyers of the power.
South Korea’s proposed $10 billion advance payment for a Korea-US nuclear power project is drawing criticism after US midterm election results raised concerns about possible restrictions on AI data centres.
The payment is intended to secure long-lead nuclear equipment that can take up to 65 months to procure.
The project framework, agreed by the two countries on October 1, calls for building eight large nuclear reactors in the United States.
A South Korean lawmaker has called for the advance to be suspended, while the industry ministry says nuclear power plants could help address local concerns about the electricity demands of data centres.
US candidate sites and potential long-term electricity buyers have not yet been confirmed.
- Who
- South Korea and the United States are pursuing a nuclear power project. South Korean lawmaker Seo Wang-jin has called for the advance payment to be halted.
- What
- The countries agreed on a framework to build eight large reactors in the United States, with a disputed advance payment of up to $10 billion to secure long-lead equipment.
- When
- The framework was agreed on October 1. The payment came under scrutiny after the US midterm elections.
- Where
- The reactors are planned for the United States. Ohio, Tennessee, South Carolina and Kentucky were mentioned as possible sites.
- Why
- Critics say tougher rules for AI data centres could weaken demand for the reactors’ electricity and make an early payment risky. The South Korean industry ministry says nuclear plants could support reliable power supply and ease local concerns.
Seo Wang-jin
South Korea’s Ministry of Trade, Industry and Energy
Advance payment
Seo Wang-jin
Seo called for the $10 billion advance to be suspended.
South Korea’s Ministry of Trade, Industry and Energy
The ministry says long-lead equipment needs to be secured early to avoid serious delays to construction.
Data-centre regulation
Seo Wang-jin
Seo said US election results had changed conditions for nuclear investment.
South Korea’s Ministry of Trade, Industry and Energy
The ministry says nuclear power alongside data centres could ease pressure on local electricity prices and improve acceptance of the projects.
Project demand
Seo Wang-jin
Critics warn that weaker data-centre development could leave the completed plants without buyers for their power.
South Korea’s Ministry of Trade, Industry and Energy
The ministry says it will assess grid connections and potential long-term buyers once candidate sites are identified.
South Korea and the United States agreed on a framework to build eight large nuclear reactors in the United States.
Seo Wang-jin called at a parliamentary news conference for the $10 billion advance payment to be suspended.
The United States was expected to notify South Korea of specific candidate sites for the nuclear plants.
Maeil Business reported growing debate over the advance payment amid concerns about possible AI data-centre restrictions.
- Advance payment
- Up to $10 billion
- Project size
- Eight large nuclear reactors in the United States
- Total US investment fund
- $200 billion
- Nuclear project allocation
- $120 billion, or 60% of the fund
- Equipment procurement time
- Up to 65 months for a reactor coolant pump and motor
- Mentioned candidate states
- Ohio, Tennessee, South Carolina and Kentucky
What people are saying
The US Democratic Party's control of the House and Senate has rapidly changed conditions for nuclear investment.
The $10 billion advance payment should be suspended immediately.
If large power sources such as nuclear plants are built alongside them to provide stable electricity, this could instead reduce pressure for local electricity price increases and improve acceptance of data centres.