The United States and South Korea are reopening discussions on their 2015 civil nuclear agreement to address a new priority: powering artificial intelligence infrastructure. As AI data centers consume unprecedented amounts of electricity, both nations see nuclear energy as essential to their tech strategies, creating fresh momentum for bilateral cooperation on reactor technology, fuel supplies, and spent fuel management.

What's Driving the Nuclear-AI Connection?

For decades, U.S.-South Korean nuclear cooperation focused on technical assistance and traditional large-scale reactors. Today, the landscape has shifted dramatically. Growing electricity demand, decarbonization goals, and the rapid expansion of artificial intelligence infrastructure are driving renewed investment in nuclear energy across both countries. South Korean companies have already become critical suppliers to American nuclear projects, providing key reactor components like steam generators and reactor vessels. This existing industrial relationship creates a natural foundation for deeper collaboration on next-generation technologies.

The timing is significant. The current Section 123 Agreement, which entered into force in 2015, established a twenty-year framework for bilateral cooperation but left several important issues unresolved, particularly regarding uranium enrichment and spent fuel reprocessing. Now, with AI companies demanding reliable, carbon-free power sources, both governments see an opportunity to modernize the agreement and expand cooperation in ways that benefit their nuclear industries and energy security.

How Can the U.S. and South Korea Strengthen Nuclear Cooperation?

• Restart High-Level Coordination: Washington and Seoul should establish regular working groups through existing channels or create new official coordination bodies to address unresolved issues, coordinate public-private partnerships, and strengthen communication between government agencies. This institutional engagement would rebuild momentum behind the 2015 agreement and provide a structured forum for addressing long-standing disputes.
• Expand Industry Partnerships on Advanced Reactors: Both countries should strengthen industry-to-industry collaboration supporting traditional large-scale reactors, advanced reactors, and small modular reactors (SMRs). South Korean firms have already filled critical gaps in U.S. nuclear projects, and deeper cooperation will reinforce both nations' leadership in next-generation nuclear technologies essential for powering AI infrastructure.
• Build Secure Nuclear Fuel Supply Chains: Recent geopolitical disruptions have highlighted the importance of reliable nuclear fuel supplies. Washington and Seoul should expand cooperation on low-enriched uranium (LEU), high-assay low-enriched uranium (HALEU), and advanced fuel production. Strengthened fuel supply partnerships would improve energy security and support long-term nuclear industry growth for both countries.
• Collaborate on Spent Fuel Management: South Korea is approaching capacity limits for onsite storage of spent nuclear fuel at reactor sites, making this an urgent shared challenge. The United States and South Korea should prioritize joint development of interim spent fuel storage solutions, spent fuel management technologies, and long-term disposal strategies. Enhanced collaboration would address near-term storage challenges while supporting sustainable growth of both nations' nuclear sectors.

Why Does AI Make Nuclear Cooperation More Urgent?

The explosion of AI infrastructure has fundamentally changed how governments think about energy policy. Large language models and AI training require enormous amounts of electricity, and data centers powered by fossil fuels undermine climate commitments. Nuclear energy offers a solution: it provides reliable, carbon-free baseload power that can run continuously without the intermittency challenges of renewables. This reality has elevated nuclear from a niche energy source to a strategic priority for tech-leading nations.

For the U.S.-South Korean partnership, this creates a compelling case for modernizing their nuclear agreement. South Korea remains dependent on imported enriched uranium, while the United States is seeking to revitalize its domestic nuclear industry. By coordinating on fuel supplies, reactor technology, and waste management, both countries can strengthen their energy independence while supporting the global AI infrastructure buildout. The partnership also addresses a secondary concern: South Korea's interest in nuclear-powered submarines, which would require separate legal frameworks but demonstrates the broader strategic importance of nuclear technology to Seoul.

The policy recommendations emphasize a practical, commercially focused approach. Success will depend not only on government-to-government engagement but also on sustained collaboration among private-sector industry leaders, academic researchers, and regulators. By prioritizing AI-driven nuclear development, secure fuel supplies, spent fuel management, and stronger institutional coordination, Washington and Seoul can build a more resilient and future-oriented nuclear partnership that meets the energy demands of the AI era.