Seismic analysis, design, and qualification of systems, structures, and components (SSCs) is a significant contributor to the capital cost of a nuclear power plant. To reduce capital costs of advanced nuclear power plants and make commercial nuclear energy more competitive, innovations are needed in their structural design and construction, and not just in the reactor core and associated systems. Seismic isolation has been identified as an important cost-cutting technology that enables standardization of equipment across various sites. This paper develops and demonstrates a cost- and risk-based seismic design optimization of a representative safety system in a nuclear power plant with the dual goals of minimizing overnight capital cost and meeting safety goals. The design optimization can also include component seismic isolation, in which case, the optimized design includes a set of equipment that needs to be seismically isolated to minimize capital cost. The open-source codes MASTODON and Dakota are used for seismic probabilistic risk assessment and design optimization, respectively. A generic nuclear facility with a safety system comprising SSCs that are common to nuclear power plants is considered for the demonstration of the design optimization and is assumed to be located at the Idaho National Laboratory site. Generic costs and seismic design cost functions are assumed for the SSCs of the safety system. The sum of the costs of the SSCs is minimized in the optimization process, while the risk of failure of the safety system is provided as a constraint. Results show that the optimization process reduces capital costs significantly while automatically prioritizing the safety of SSCs that contribute most to the risk of the safety system.