Korea's AI ambition faces power crunch

South Korea's government projects peak power demand could reach 158.4 to 165 gigawatts (GW) by 2040, up about 27 GW from a projection made four months earlier, driven by its semiconductor, physical AI, and data-center mega-projects. The increase is equivalent to the capacity of about 19 large 1.4-GW nuclear reactors, and current peak demand is about 104 GW, meaning demand could rise by more than half within 14 years. The assessment, presented at the fifth discussion meeting for the 12th Basic Plan for Electricity Supply, underscores the urgent need to secure power supply to support the country's industrial ambitions.

Korea’s ambition to build a new generation of semiconductor, physical artificial intelligence AI and data-center industries is running into a basic but formidable constraint: electricity. A government assessment incorporating demand from its three “mega-projects” estimates that peak power demand could reach 158.4 to 165 gigawatts GW in 2040. That is roughly 27 GW higher than the projection made just four months earlier — equivalent to the capacity of about 19 large 1.4-GW nuclear reactors. The scale of the increase should be a wake-up call. Korea’s current all-time peak demand is about 104 GW. Within 14 years, demand could therefore rise by more than half. The country’s industrial ambitions will mean little if it cannot provide the electricity required to operate the factories, data centers and infrastructure behind them. Building semiconductor clusters and attracting AI investment without securing their power supply would amount to constructing engines without fuel. The latest estimate, presented at the fifth discussion meeting for the 12th Basic Plan for Electricity Su