Ulsan, South Korea, September 1, 2025
News Summary
SK Telecom has signed a comprehensive procurement agreement with Schneider Electric to supply MEP equipment—including switchgear, UPS, transformers and automated control systems—for its Ulsan AI data center. Schneider Electric will integrate ETAP digital-twin software with SK Telecom’s AI DCIM platform to enable real-time monitoring, predictive operations and energy optimisation. The partnership also covers prefabricated MEP modules to shorten construction timelines and an MoU to pursue joint UPS and ESS development across SK Group affiliates. The Ulsan facility will expand SK Telecom’s AIDC capacity and support plans to scale energy-as-a-service offerings and standardized infrastructure across projects.
SK Telecom signs integrated MEP procurement and digital-twin deal with Schneider Electric for Ulsan AI data center
SK Telecom has reached a broad procurement agreement with Schneider Electric to supply
mechanical, electrical and plumbing equipment and services for the SK AIDC in Ulsan.
The deal also sets up technical work to integrate Schneider Electric’s ETAP digital-twin
software with SK Telecom’s AI DCIM platform, letting the company use a digital twin to
monitor and optimise power systems and infrastructure in real time. The agreement is the
first concrete result from the partnership the two firms announced earlier this year.
What the agreement covers
Under the procurement agreement, Schneider Electric will deliver MEP equipment across
five categories, including switchgear, Uninterruptible Power Supply (UPS),
transformers and automated control systems. Schneider will provide solutions that
span design, construction and operations for the data center build.
Digital twin and operational tools
SK Telecom will add Schneider Electric’s ETAP software into its unified AI DCIM
system. ETAP is a digital-twin tool for power systems that covers design, analysis and day-to-day
operations. Integrating ETAP with AI DCIM is intended to support digital twin-based operational
optimisation, improve real-time monitoring of power use and infrastructure, and boost overall
data center efficiency.
Ongoing collaboration and working group
Since the initial announcement at a trade event in March, the two companies have formed a
working group that is actively working on multiple areas. Key activities include:
- Integration and commercialisation of the AI DCIM platform with automated control systems
- Development of standard MEP reference designs for data centers
- Creating prefabricated, integrated solutions to cut construction time
- Joint sales efforts to grow Energy-as-a-Service (EaaS) offerings
Broader SK Group cooperation and energy storage work
The companies have also signed a Memorandum of Understanding to broaden ties across SK Group.
Under that arrangement, they will jointly develop UPS and Energy Storage System (ESS)
technologies while leveraging SK On’s lithium-ion battery know-how. The plan aims to
coordinate procurement across SK Group affiliates so shared demand can increase efficiency and
scale joint projects.
Timing, scale and business context
The Ulsan AI data center is slated to begin operations in 2027. Together with an AIDC
already planned in the Guro district of Seoul, SK Telecom says the combined capacity will exceed
300 MW once both sites are running. The company expects the AIDC business to become a
major revenue source and has publicly set a target of more than KRW 1 trillion in annual
AIDC revenue by 2030.
The procurement deal follows other SK Telecom moves tied to AI infrastructure, including a
joint plan with a major cloud provider and SK Group affiliates to build an AWS AI Zone in Ulsan.
The Schneider Electric agreement is positioned as a step toward faster construction, tighter
operational control and wider group-level cooperation.
Company priorities and wider context
The partnership will also support efforts to speed up construction by using prefab and integrated
building methods, which the working group says will save time on site work. On the operations side,
the combined software and control systems aim to lower energy waste and help manage high-power
loads tied to AI compute.
SK Telecom reported growth in its AI businesses in recent quarterly results and has been investing
in both infrastructure and security measures. The company has launched steps to strengthen customer
trust and pledged capital for improved information protection as it pushes further into AI services
and larger-scale data center operations.
What this means for the market
The agreement ties a major telecom operator’s data center plans to a large vendor’s power and
control portfolio and to a separate battery maker in the SK group. If the partners deliver on the
planned prefab designs, joint equipment sourcing and software integration, the deal could shorten
build times and lower operating costs for large AI data centers in the region.
Frequently Asked Questions (FAQ)
What did SK Telecom and Schneider Electric agree to?
They agreed on integrated procurement of MEP equipment and the technical integration of Schneider’s
ETAP digital-twin software into SK Telecom’s AI DCIM to manage and optimise the Ulsan AIDC.
What equipment will be supplied?
Equipment in five MEP categories, including switchgear, UPS units, transformers and automated
control systems, along with related design and construction services.
What is ETAP and why integrate it?
ETAP is a power-system digital-twin tool used for design, analysis and operations. Integrating it
with AI DCIM supports real-time monitoring and operational optimisation.
When will the Ulsan AI data center start operating?
Operations are planned to begin in 2027.
How does this fit into SK Group plans?
A wider MoU aims to expand cooperation across SK Group, including joint UPS and ESS development
using SK On battery technology and coordinated procurement to gain scale benefits.
Key features at a glance
| Feature | Details |
|---|---|
| Agreement type | Integrated MEP procurement and software integration |
| Primary suppliers | SK Telecom and Schneider Electric |
| Major equipment categories | Switchgear, UPS, transformers, automated control systems, plus one additional MEP category |
| Software integration | ETAP integrated into SK Telecom’s AI DCIM for digital twin operations |
| Timeline | Ulsan AIDC to start operations in 2027 |
| Capacity projection | Combined SK AIDC capacity expected to exceed 300 MW once Ulsan and Guro sites operate |
| Group collaboration | MoU to expand cooperation across SK Group, joint UPS/ESS development with SK On batteries |
| Operational aim | Faster builds via prefab solutions and better energy/use monitoring through digital twins |
Deeper Dive: News & Info About This Topic
Additional Resources
- Capacity Media: SK Telecom and Schneider Electric — Ulsan MEP deal
- Wikipedia: SK Telecom
- The Fast Mode: SK Telecom & Schneider Electric expand AI data center collaboration in Ulsan
- Google Search: ETAP digital twin
- SK Telecom Newsroom: SK Telecom & Schneider Electric announcement
- Google Scholar: AI data center digital twin
- Schneider Electric: News & Media (company press)
- Encyclopedia Britannica: Data center
- ETAP: Official site (digital-twin power system software)
- Google News: SK Telecom Ulsan AI data center
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