The coupling of cell metabolism to membrane electrical activity is a vital process that regulates insulin secretion, cardiac and neuronal excitability and the responses of cells to ischemia. ATP‐sensitive potassium channels (K_ATP; Kir6.x) are a major part of this metabolic–electrical coupling system and translate metabolic signals such as the ATP:ADP ratio to changes in the open or closed state (gate) of the channel. The localization of the nucleotide‐binding site (NBS) on Kir6.x channels and how nucleotide binding gates these K_ATP channels remain unclear. Here, we use fluorescent nucleotide binding to purified Kir6.x proteins to define the peptide segments forming the NBS on Kir6.x channels and show that unique N‐ and C‐terminal interactions from adjacent subunits are required for high‐affinity nucleotide binding. The short N‐ and C‐terminal segments comprising the novel intermolecular NBS are next to helices that likely move with channel opening/closing, suggesting a lock‐and‐key model for ligand gating.