The South Korean government is moving closer to unveiling a major energy investment initiative in the United States, with a projected value potentially exceeding $100 billion. This plan is designed to bankroll American nuclear and natural gas power projects, aiming to satisfy the surging electricity demand driven by the expansion of artificial intelligence data centers. However, negotiations between the two countries are still underway, and the final scale, location, and announcement date of the projects have yet to be locked in.

According to sources with knowledge of the matter, both sides are advancing two separate energy investment deals that could be made public as early as next week. One of these involves constructing up to eight nuclear reactors within the United States, with a total investment reaching tens of billions of dollars, and possibly exceeding the $100 billion mark. The first batch of reactors could adopt the AP1000 design from American firm Westinghouse Electric, while discussions are also considering the APR1400 reactor model from Korea Electric Power Corporation. Site selection and construction schedules remain undecided, though the possibility of building these reactors on US government-owned land has been raised. Currently, the two operational AP1000 units in the US are located at the Vogtle nuclear power plant in Georgia. Westinghouse submitted updated design documents to the US Nuclear Regulatory Commission in April this year, designating the Vogtle Unit 4 as the standard reference plant for future American projects. Korea Electric Power Corporation has stated it cannot comment at this time as the two governments are still in consultation, while Westinghouse has yet to respond to requests for comment. South Korean officials believe that taking part in US nuclear ventures will help establish a local supply chain and open up more overseas opportunities for the country's nuclear energy firms.

The second potential transaction focuses on building a natural gas power project in Texas, with an estimated investment of around $20 billion, primarily intended to supply electricity for AI data centers. If talks proceed as planned, South Korea is preparing to transfer more than $2 billion as an initial payment before the end of September. Subsequent funding would be spread out over several years, with an annual cap of $20 billion on South Korean contributions as per the bilateral agreement. The South Korean government has indicated that no final decision has been made on the investment projects, and the White House has declined to comment. As a result, the number of reactors, the overall project value, and the initial payment figures remain part of the negotiating proposal and cannot yet be taken as formal investment commitments.

These projects fall under a trade and economic arrangement struck between South Korea and the US in 2025. Under that framework, Washington agreed to lower tariffs on most South Korean goods from 25 percent to 15 percent, while Seoul pledged to invest $350 billion in the US and to purchase an additional $100 billion worth of American energy products. Of the total investment pledge, $150 billion has been earmarked for the US shipbuilding industry, leaving $200 billion available for strategic sectors such as semiconductors, nuclear power, and biopharmaceuticals. Earlier this year, South Korea established a state-run agency to assess the commercial feasibility of these projects, with the bilateral investment committee under the deal then reviewing and offering recommendations. As concrete projects were slow to materialize, US officials had pressed for progress on the agreement. The South Korean National Assembly approved the arrangement back in March, and if these energy ventures come to fruition, they would rank among the first major deals to emerge from the investment framework.