South Korea's decision to invest in TerraPower's advanced nuclear reactors four years ago is proving remarkably timely as artificial intelligence and semiconductor manufacturing drive unprecedented electricity demand. A single SK hynix semiconductor plant could require power equivalent to what one Natrium reactor produces, according to TerraPower CEO Chris Levesque, underscoring why major tech companies are turning to nuclear energy to fuel AI's explosive growth.

What Makes Small Modular Reactors Attractive to AI Companies?

Small modular reactors, or SMRs, are gaining traction in the AI industry because they offer reliable, low-carbon electricity at a fraction of the cost and construction time of traditional nuclear plants. TerraPower's Natrium design, a sodium-cooled advanced reactor, can be built at roughly half the cost of conventional light-water reactors, making it economically competitive with natural gas power plants as construction scales up.

The appeal extends beyond cost. AI data centers and semiconductor manufacturing facilities require constant, dependable power that renewable energy alone cannot guarantee. Levesque highlighted how SK hynix's high-bandwidth memory chips and Nvidia's graphics processing units are critical to global AI expansion, creating a direct link between nuclear power and the infrastructure that enables artificial intelligence.

"Advanced nuclear power and AI are coming together in the Natrium program," said Chris Levesque, CEO of TerraPower.

Chris Levesque, CEO, TerraPower

How Are South Korean Companies Reshaping Nuclear Manufacturing?

SK Group's investment strategy goes beyond financial backing. The company explicitly stated it wanted to decarbonize its own energy-intensive operations, a forward-looking decision that positioned South Korea as a key player in nuclear innovation. This commitment has attracted other major South Korean firms to the effort.

HD Hyundai, the shipbuilding giant, has taken a particularly innovative approach. The company signed a Natrium reactor supply framework agreement with TerraPower in May 2026, building on its $30 million investment from 2022. HD Hyundai's leadership proposed a manufacturing model that could transform how reactors are built:

• Batch Production Model: Rather than constructing reactors one at a time, HD Hyundai suggested building multiple reactors simultaneously, similar to how the company produces 50 to 100 ships annually.
• Factory-Based Assembly: HD Hyundai is investing in its own shipyard facilities to enable factory production of reactor systems, reducing on-site construction time and costs.
• Cost Reduction Through Scale: By manufacturing reactors in batches, the company aims to drive down per-unit costs significantly, making nuclear competitive with fossil fuels.

"Do not build nuclear plants one at a time. Build several at once, like ships. We make 50 to 100 ships a year," said HD Hyundai Executive Vice Chairman Chung Ki-sun, as recounted by Levesque.

Chris Levesque, CEO, TerraPower, describing HD Hyundai's approach

Why Is Nuclear Waste Less of a Concern With Advanced Reactors?

One persistent concern about nuclear power is waste management. Natrium addresses this through advanced physics design that allows fuel to be used more completely. The reactor produces approximately two-thirds less spent fuel volume than existing reactors while generating the same amount of electricity, significantly reducing long-term storage requirements.

Levesque also emphasized that Natrium has been designed with proliferation resistance as a core requirement since TerraPower's founding 20 years ago. International Atomic Energy Agency protocols and U.S. Department of Energy oversight ensure the technology meets strict safety and security standards, particularly important given South Korea and the United States' strong cooperation framework for peaceful nuclear use.

What Does This Mean for Global Nuclear Supply Chains?

The geopolitical dimension of nuclear power has become impossible to ignore. Russia's invasion of Ukraine doubled nuclear fuel prices, exposing the risks of over-reliance on a single supplier. TerraPower and South Korea are actively diversifying fuel sources to reduce vulnerability.

The first Natrium reactor at Kemmerer, Wyoming will use fuel enriched in South Africa, while subsequent reactors will source fuel from U.S. and global supply chains. This strategy reflects a broader recognition that energy security and decarbonization are inseparable from geopolitical stability. Levesque noted that once fuel is loaded into a reactor, it provides enough energy to last through two winters, offering a unique advantage in an era of supply chain uncertainty.

TerraPower has invested more than $2 billion over two decades in the Natrium program, with approximately 1,000 engineers from TerraPower and Bechtel completing the design. Korean companies contributed significantly to this development process, reflecting the collaborative nature of the project.

When Will the First Commercial Natrium Reactor Come Online?

Construction began at Kemmerer Unit 1 in April 2026, and TerraPower says the project is on track to become the first utility-scale advanced nuclear power plant in the United States. While no specific completion date was announced, the project represents a major milestone in bringing fourth-generation nuclear technology to commercial operation.

Levesque acknowledged that the first plant will cost more than subsequent units, but he expressed confidence that costs will decline rapidly as manufacturing scales. He also noted that TerraPower could pursue an initial public offering someday, though the company remains privately held for now, with major institutional investors including Nvidia, SK Innovation, HD Hyundai, Korea Hydro and Nuclear Power, and ArcelorMittal.

The convergence of AI's energy demands and advanced nuclear technology represents a significant shift in how the tech industry approaches power infrastructure. South Korea's early bet on TerraPower is positioning the country as a leader in this emerging sector, with implications for global energy security and climate goals.