How Many Nuclear Power Plants Are Needed to Run a Semiconductor Factory?

Additional Power Demand for Three Major Megaprojects Reaches 38 GW—Equivalent to 27 APR1400 Reactors

Fabs and AI Data Centers Operate Around the Clock

Expanding Transmission Lines and Substations Also a Challenge

The infrastructure required to manufacture a semiconductor chip smaller than a fingernail and to run artificial intelligence (AI) systems is becoming immense. Semiconductor factories must operate hundreds of processing steps without interruption, while AI data centers require thousands of servers and cooling systems to run 24 hours a day. As the government designates semiconductors and AI as next-generation growth engines, how quickly it secures electricity, water, and transmission networks to support these sectors has become a crucial element of industrial competitiveness.

According to the Ministry of Trade, Industry and Energy and the Ministry of Climate, Energy and Environment on September 25, the additional power needed for the three major megaprojects being promoted by the government—semiconductors, physical AI, and AI data centers—is expected to reach about 38 GW (gigawatts). Given that the domestic flagship nuclear power plant, the APR1400, has a capacity of 1.4 GW per unit, this is equivalent to about 27 nuclear power plants. While this does not mean that 27 new nuclear plants will be built, this figure provides a sense of the increasing weight of advanced industry investments on the country’s future electricity demand.

The "Three Major Megaprojects" announced by the government in June 2026 center on significantly expanding semiconductor production capacity and constructing GW-class AI data centers and physical AI industrial hubs nationwide. The plan is to complete the existing semiconductor production clusters in the Seoul metropolitan area as soon as possible, add four memory fabs and an advanced packaging fab in the southwest region, and build HBM, NAND, and packaging facilities in the Chungcheong region. AI data centers are set to be deployed throughout the country, with 2 GW in Chungcheong region, 2.4 GW in Gangwon, 2 GW in Yeongnam, and 1 GW in the southwest region.

38 GW Required by Advanced Industry... Yongin Alone Matches the Power Demand of 10 Nuclear Power Plants

Semiconductor factories are among the facilities with the highest power demand. Manufacturing circuitry on wafers involves hundreds of repeated steps such as deposition, photolithography, etching, and cleaning, all relying on large manufacturing equipment. Climate control systems must also continuously maintain the temperature and humidity within clean rooms to minimize fine dust.

A leading example is Yongin, Gyeonggi Province. The Yongin Semiconductor Cluster, which will house production facilities for Samsung Electronics and SK hynix, will include 10 fabs (semiconductor production plants). When all these facilities are operational, the power requirement is expected to reach 14.7 GW—matching the capacity of more than ten APR1400 nuclear reactors.

AI data centers are also significant consumers. With the rise of generative AI, high-performance semiconductors such as GPUs are being deployed on a large scale, making server power consumption soar. Cooling systems and power conversion equipment to dissipate heat generated by servers must also be run in parallel. As AI usage and data center size increase, power requirements grow accordingly.

The issue is that simply generating more electricity is not enough. To deliver the required electricity to semiconductor factories and data centers at the right time and place, transmission lines and substations must also be put in place.

In the case of the Yongin Semiconductor Cluster, three 1 GW-class liquefied natural gas (LNG) power plants will be built within the industrial complex to supply initial power. However, it will be difficult to meet the final demand of 14.7 GW through on-site generation alone. As a result, the existing power grid must be reinforced and additional electricity brought in from other regions, such as the east coast and central areas, via the transmission network.

Constructing transmission lines takes considerable time due to route selection, consultations with residents, and permitting procedures. Even if a semiconductor fab or data center is completed, if transmission lines and substations are not ready, it may not be possible to supply the required electricity on time. The government's push to establish the power grid as a national strategic asset and build it proactively reflects this concern, along with securing power generation sources.

‘Electric Road’ Before Factories... Government Also Invests Preemptively in Infrastructure

The government has recognized that the success of the three major megaprojects does not depend solely on corporate investment in factories, and has begun investing public funds to preemptively secure power and water infrastructure. Even if companies invest hundreds of trillions of won to build production facilities, if electricity and water cannot be supplied on time, it becomes difficult to operate the plants as planned.

This approach is reflected in the budget proposal for next year. The government has newly allocated 572.4 billion won to install energy storage systems (ESS) at transmission ends to ensure stable power delivery from power-producing regions to areas with high demand such as the metropolitan area. 65.8 billion won has been earmarked for the construction of demand-attracting substations to encourage companies with high power demand to locate in regions with available grid capacity, and 36 billion won for power quality stabilization facilities. In addition, the government has budgeted 500 billion won in investment to support Korea Electric Power Corporation's capacity to invest in the power grid.

The distribution of power-hungry facilities is also being adjusted to align with power plants and grids. The government’s public map for the three major megaprojects unveils plans to expand advanced industries—previously concentrated in the metropolitan area—across the Chungcheong, southwest, Gangwon, and Yeongnam regions. For AI data centers alone, facilities will be distributed nationwide: 2 GW in Chungcheong, 2.4 GW in Gangwon, 2 GW in Yeongnam, and 1 GW in the southwest. The rationale is that continually stacking demand in the metropolitan area and simply expanding the grid cannot keep up with the rapid growth in demand.

Securing water required for semiconductors in advance is also a priority. In the Yongin Semiconductor Industrial Complex, a dedicated pipeline is being built to supply 310,000 tons of water daily from the Paldang Dam. Water infrastructure is also being preemptively established in newly emerging advanced industry bases in the southwest and Chungcheong regions. Next year’s budget includes 119.6 billion won for water supply in Honam, 8.1 billion won for Chungcheong, and 250 billion won in capital contributions to the Korea Water Resources Corporation.

Kim Seonghwan, Minister of Climate, Energy and Environment, recently emphasized in connection with the increasing power demand resulting from the three major megaprojects that electricity should be regarded not merely as an energy supply, but as a "national security asset." Minister Kim stated, “While preparing for chips or AI data centers might take only two or three years if determined, it takes much longer to prepare the necessary electricity. Electricity should be treated as a national strategic agenda and security asset, not simply as an auxiliary tool for industry.”

This content was produced with the assistance of AI translation services.