Chey Tae-won, chairman of SK Group, and Bill Gates, chairman of TerraPower, are enhancing their energy collaboration centered around small modular reactors (SMR). As the demand for power in data centers surges due to the proliferation of artificial intelligence (AI), their 'SMR alliance' is evolving from equity investments to tangible business initiatives.
According to industry sources, Chey and Gates discussed next-generation nuclear power, the power needs of AI data centers, and global energy cooperation during a dinner meeting on August 14 at Seonhye-won in Jongno, Seoul. The two have maintained a consistent partnership, having met during Gates' visit to South Korea last August.
The relationship between SK and TerraPower began in 2022 when SK and SK Innovation jointly invested $250 million in TerraPower, becoming its second-largest shareholder. Currently, TerraPower is advancing its sodium project, a non-water-cooled SMR, in Wyoming, USA.
The sodium reactor is based on TerraPower's fourth-generation sodium-cooled fast reactor technology and is praised for overcoming the rigidity of traditional nuclear power plants with its thermal storage capabilities. In March of this year, it received construction approval from the U.S. Nuclear Regulatory Commission (NRC) as the first commercial advanced reactor.
SK plans to integrate its existing energy businesses with TerraPower's SMR technology to establish a new power model aimed at AI data centers. SK Innovation currently has a diverse portfolio in power infrastructure, including direct imports of liquefied natural gas (LNG), LNG power generation, and energy storage systems (ESS). The goal is to develop an integrated energy solution using TerraPower's sodium SMR technology for AI data centers.
Initially, the plan involves supplying power to data centers using LNG power generation and ESS, with a long-term vision of establishing a phased power supply system that utilizes SMR as a carbon-free baseload power source.
SK's focus on the SMR business is driven by the increasing power demand associated with AI. AI data centers require a stable and substantial power supply, leading to intense competition in the global market to secure reliable power sources such as LNG and nuclear energy.
SMRs are gaining attention as a key power source in the AI era due to their flexibility in construction timelines and locations compared to traditional large nuclear plants, as well as their ability to provide stable power without carbon emissions. Industry insiders believe that as TerraPower's sodium project enters a more active execution phase, the business collaboration with SK will become more concrete.
An industry source stated, "The ability to reliably supply massive amounts of power is crucial for AI data centers, increasing the potential for SMR utilization. If SK combines its existing LNG and ESS businesses with SMR technology, it will have a comprehensive portfolio to meet the power demands of AI data centers."
* This article has been translated by AI.
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