As electricity demand surges due to advances in artificial intelligence (AI) technology, Korean construction companies are moving in earnest to expand their presence overseas. With construction of a small modular reactor (SMR) project in the United States involving Hyundai Engineering & Construction (Hyundai E&C) expected to begin this year, the industry is anticipating new project orders in the United States and Europe. Following last year’s successful bid for the Dukovany nuclear power plant in the Czech Republic, some observers project that this year could mark the first year of a full-fledged “nuclear renaissance.”

● World’s first SMR involving Hyundai E&C set to break ground

After securing nuclear power contracts in the Czech Republic and other parts of Europe last year, expectations are high this year for additional nuclear orders in the United States. According to the construction industry on the 15th, two small modular reactors (SMRs) at the Palisades nuclear power plant site in Michigan are expected to break ground by March this year. This is a project under development by Hyundai E&C and Holtec International of the United States, with completion targeted for 2030. Once construction starts, Hyundai E&C will hold the title of being involved in the world’s first SMR construction. SMRs are nuclear power plants in which small reactors are manufactured in modular form at factories and then installed at required sites.

Another key project is the 110-gigawatt (GW) “Integrated Energy and AI Campus” being promoted in Texas by Fermi Energia’s U.S. affiliate, Fermi America, an American energy developer. The project calls for the construction of four large 4GW nuclear reactors, two SMRs, a combined-cycle gas turbine power plant, and a grid integrating solar power and battery energy storage systems with an AI data center. Hyundai E&C won the basic design contract for the four large reactors last year and is looking ahead this year to additional engineering, procurement, and construction (EPC) contracts. Shin Dae-hyun, an analyst at Kiwoom Securities, forecast, “Considering the U.S. government’s commitment to expanding nuclear power, there is a high likelihood that the main EPC contract will be signed within this year.”

In Europe, a main contract is expected to move forward this year for Bulgaria’s Kozloduy nuclear power plant, for which Hyundai E&C signed a design contract last year. If concluded, it is likely to become an ultra-large project worth tens of trillions of KRW. Additional nuclear power projects are also being discussed in Finland, Slovenia, the Netherlands, and other countries.

● “Nuclear capacity to grow more than 70% within 15 years”

The steady stream of new overseas nuclear-related projects reflects the growing recognition of nuclear power, which can supply large-scale electricity stably, as a solution to AI-driven power shortages. Its role as clean energy in responding to the climate crisis is also being highlighted. In May last year, the United States announced plans to increase its current nuclear power generation capacity of about 100GW to 400GW by 2050. Europe is promoting plans to expand nuclear capacity to 109GW by 2050. Japan, India, and other countries are also advancing concrete plans to develop and operate nuclear power plants to secure their power grids.

According to the Korea Nuclear Industry Association, the International Energy Agency (IEA) projected in its “World Energy Outlook 2025,” released in November last year, that global nuclear power generation capacity will increase to 638GW by 2040. This represents growth of more than 70% from the current installed capacity of 377GW compiled by the International Atomic Energy Agency (IAEA). The projection assumes that current national plans under implementation or with concrete decisions proceed as scheduled.

Major domestic construction companies are increasingly viewing overseas nuclear-related businesses, including SMRs, as next-generation growth engines beyond the domestic housing business, as the downturn in the domestic housing market becomes prolonged. Korean builders are pursuing orders by highlighting their ability to handle the entire process—from basic design to procurement and construction. Given the long-term nature of nuclear projects, “on time, on budget” completion is critical, and Korean companies have extensive track records in construction to support this.

Major builders are entering local markets by forming partnerships with overseas companies and public corporations. Hyundai E&C has partnerships with U.S. nuclear companies Westinghouse and Holtec International; DL E&C has a partnership with U.S. SMR developer X-energy; and Doosan Enerbility has partnered with Westinghouse. Daewoo Engineering & Construction is participating as lead constructor in the Dukovany nuclear project in the Czech Republic, strengthening cooperation with domestic partner companies.

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