Korean and Japanese capital pours into U.S. nuclear and gas-fired power generation, easing the AI power crunch - CHOSUNBIZ

The United States is reportedly using tariff agreements to steer Korean and Japanese capital toward nuclear and gas-fired power plants in the United States, building a system to support electricity demand from AI data centers and manufacturers. Of the approximately $305.3 billion in announced Korean and Japanese funds, a large proportion has been allocated to power plant construction.

Korea is investing $22.3 billion in the construction of a 6.5GW-class gas-fired power plant in Encinal, Texas, with commercial operations targeted for 2029. It is also committing a total of $120 billion to the construction of 8 large-scale nuclear reactors, 2 of which will use Korea's APR1400 design. Combined, Korea's investment totals approximately $142.3 billion, accounting for approximately 71% of the amount announced by Korea.

Japan's primary plan involves an investment of $36 billion, of which $33.3 billion is allocated to a 9.2GW gas-fired power plant in Portsmouth, Ohio. A secondary plan of up to $73 billion has been finalized, with $40 billion allocated to SMRs and $33 billion to gas-fired power plants. Japan's combined primary and secondary investment totals approximately $109 billion, 97.5% of which has been allocated to power plants.

The combined capacity of the power plants and data centers in both countries is expected to reach 15.7GW, equivalent to 11 APR1400 nuclear reactors rated at 1.4GW each. Experts have expressed the view that the US government is pursuing a strategy of getting ahead of power infrastructure needs through investment by allied-country capital.

There are calls to expand baseload power capacity to secure a stable supply, as electricity demand from AI data centers cannot be met by solar and wind power alone. EIA and IEA forecasts indicate that US electricity sales are trending higher this year, with data centers seen as one factor behind the increase in demand.