[Edaily Reporter Kim Hyun-ah ] With the proliferation of generative artificial intelligence (AI), securing a stable power supply for ultra-large AI data centers (AIDCs) has emerged as a key challenge for Big Tech companies.

This is because even if companies secure semiconductors and data centers, it is difficult to maintain competitiveness without a stable power supply. SK Group’s consideration of acquiring a stake in Westinghouse, a U.S. nuclear power technology company, is also drawing attention in this context. This move can be interpreted as a strategic move to expand its business scope beyond semiconductors and telecommunications to include nuclear power, thereby encompassing AI infrastructure.

According to a report by The Korea Economic Daily on the 15th, SK Group is considering a plan to match the investment amounts made by domestic nuclear power plant engineering, procurement, and construction (EPC) firms. The plan involves securing a 5–10% stake in partnership with companies such as DOOSAN ENERBILITY, SAMSUNG C&T CORPORATION, and HyundaiEngineering&Construction. The maximum acquisition cost is estimated at approximately 3.7 trillion won.

#SK Group owns SK hynix, which supplies AI semiconductors such as High-Bandwidth Memory (HBM), and SKTelecom, which operates data center and telecommunications infrastructure businesses. With the addition of nuclear power plant investments, the group could pursue a full-stack AI strategy encompassing computing, communications, and power. However, actual synergies will depend on how concretely the rights associated with the investment, the scope of business participation, and the power procurement structure are defined.

Surge in AI Power Demand… Why Nuclear Power Is Gaining Attention Again

As AI data centers proliferate, securing a stable power supply has emerged as a key factor determining corporate investment and location decisions. Since solar and wind power generation fluctuates depending on weather and time of day, a stable power source is needed to supplement them.

At a recent forum hosted by the National Academy of Science and Technology of Korea, Yoo Jong-seon, former professor of Energy Engineering at the Daegu Gyeongbuk Institute of Science and Technology (DG-ITX), projected that global data center electricity consumption in 2030 will reach 945–1,000 terawatt-hours (TWh)—double the level of 2024. This is why nuclear power plants—which produce low carbon emissions and can generate large amounts of electricity—and small modular reactors (SMRs) are gaining attention as viable alternatives.

Will the Westinghouse Investment Expand Nuclear Power Technology and Business Opportunities

? If SK secures a stake in Westinghouse and expands business cooperation, there is a possibility that it will broaden its business scope from existing SMR-centered nuclear power investments to large-scale nuclear power plants. Westinghouse is engaged in nuclear power plant design, nuclear fuel supply, and maintenance and repair operations, including the AP1000, a large-scale reactor with a capacity of approximately 1,100 MW. It is also developing the AP300, an SMR, and the eVinci, an ultra-small reactor.

Currently, Canadian asset management firm Brookfield holds a 51% stake in Westinghouse, while Canadian nuclear fuel company Cameco holds 49%.

However, a stake in the company alone does not guarantee the free use of nuclear power technology or the direct securing of power for data centers. Nuclear power plants require a significant amount of time for licensing, site acquisition, financing, and grid connection. To achieve a return on investment, it is necessary to go beyond securing a stake to obtain technology licensing rights and terms for actual project participation, and to link these to power procurement.

Impact on Nuclear Power Export Competitiveness… Technology Licensing Remains a Separate Challenge

The collaboration with Westinghouse also draws attention in terms of the Korean nuclear power industry’s overseas expansion. While Korea possesses capabilities in nuclear power plant construction, equipment manufacturing, and project management, intellectual property rights related to reactor design and export controls have been key variables in overseas projects. The dispute between Westinghouse and Korea Hydro & Nuclear Power (KHNP) also garnered attention in this regard.

SK’s equity investment alone will not resolve the issues surrounding technology licensing or exports for the South Korean nuclear power industry. The rights secured by an investor may differ from the rights to actually utilize nuclear power technology in business operations. This requires the backing of specific scope of rights, contractual terms, agreements between the parties, and intergovernmental consultations.

Cho Hong-jong, a professor in the Department of Economics at Dankook University, identified the pace of SMR development as another challenge. Given that some countries, such as those in Europe, are accelerating development with a target of 2029, he argued that a system is needed to promote private investment and innovation so that the domestic development schedule does not fall behind. Efforts to enhance domestic technological competitiveness and commercialization capabilities must proceed in parallel with nuclear power investments.

Nuclear Power Alone Has Immediate Limitations… Power Grids and Short-Term Power Sources Also Pose Challenges

In the AI era, power shortages cannot be resolved simply by building more power plants. Experts cite the lack of connection capacity in the Seoul metropolitan area’s power grid—rather than insufficient power generation—as the primary constraint on current power supply and demand. If data centers and semiconductor factories expand into regional areas, the burden on power supply and demand could increase even outside the Seoul metropolitan area after 2030.

Professor Kim Seung-wan of the Korea Energy Technology University predicted that, based on his own analysis, power supply and demand issues could arise starting in 2030 if large-scale data centers and semiconductor factories are built in the Honam region. He explained that since nuclear power plant construction is already underway and it may be difficult to meet delivery deadlines for gas turbine equipment, the means to secure additional power in the short term are limited. Professor Kim cited solar power, batteries, and fuel cells as alternatives that can be secured relatively quickly.

Professor Park Jong-bae of the Department of Electrical Engineering at Konkuk University suggested that, to ensure a stable power supply before 2030, reviews for the continued operation of nuclear power plants that have reached the end of their design life should be expedited, and liquefied natural gas (LNG) power plants should be constructed early near data centers and semiconductor factories. He also proposed improving the regulatory framework to allow consumers to directly trade electricity generated by power plants.

In the medium to long term, balancing nuclear power and renewable energy remains a challenge. Former Professor Yoo proposed maintaining the share of nuclear power generation at 30–40% by 2030 and expanding the share of renewable energy to 50–70% by 2050. This is an expert recommendation, not a confirmed government target.

While SMRs are expected to serve as a medium- to long-term power source, they struggle to meet short-term demand. Professor Kim predicted that SMRs would not emerge as a viable alternative for powering AI data centers until after 2035–2036. This implies that, for now, existing power sources and the power grid should be utilized to the fullest, while a combination of nuclear power, renewable energy, and storage facilities is needed in the medium to long term.

SK’s investment in Westinghouse demonstrates that the focus of the AI infrastructure competition is shifting from semiconductors and data centers to securing a stable power supply. However, an equity investment does not automatically translate into power supply or technological competitiveness. The success of the investment depends on whether SK can secure participation in nuclear power projects and the rights to utilize the technology, and whether it can link these to actual power procurement.