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 inks broad MEP procurement and digital-twin integration deal with Schneider Electric for Ulsan AI data center
SK Telecom has signed a comprehensive procurement deal with Schneider Electric to supply mechanical, electrical and plumbing (MEP) equipment and related solutions for the planned SK AIDC in Ulsan. The agreement covers major MEP systems and a software integration that will bring a digital twin capability into SK Telecom’s unified AI Data Center Infrastructure Management platform.
What the deal covers — top-line
The supplier will deliver MEP equipment across five categories, including switchgear, Uninterruptible Power Supply (UPS), transformers and automated control systems. Schneider Electric will also support the integration of its ETAP power-systems digital twin software with SK Telecom’s AI DCIM platform to enable real-time monitoring and operational optimization.
Why it matters now
The agreement is the first concrete outcome of a partnership the two companies announced earlier in the year. By adding the ETAP digital twin into SK Telecom’s AI DCIM, operators will be able to analyze power design, run what-if scenarios and adjust operations in real time to improve efficiency and use less energy. This supports SK Telecom’s broader plan to scale AI infrastructure and improve data center performance as demand for AI compute grows.
How the companies will work together
Since the initial announcement, the two firms set up a working group that is collaborating on:
- Integrating and commercializing SK Telecom’s AI DCIM with Schneider Electric’s automated control systems;
- Developing standard MEP reference designs for repeatable data center builds;
- Creating prefabricated and integrated solutions to cut construction time;
- Expanding joint sales work to grow Energy-as-a-Service (EaaS) offerings.
Broader group-level collaboration
The deal is accompanied by a memorandum of understanding to extend collaboration across SK Group affiliates. Under that agreement, the two companies will pursue joint development of UPS and Energy Storage System (ESS) technologies that make use of lithium-ion battery tech from SK On. They also plan to coordinate procurement across group companies to gain efficiency and scale.
Project timeline and scale
The Ulsan AI data center is planned to begin operations in 2027. Once the Ulsan facility and an existing Guro AI data center are operating together, SK Telecom expects total data center capacity to top 300 MW. The company has set a longer-term target of annual AIDC revenue exceeding KRW 1 trillion by 2030.
Context within SK Telecom’s business
SK Telecom reported second-quarter consolidated revenue and income figures for 2025 and said its AI business lines are growing. The firm has outlined a multi-year investment and security plan after a recent cybersecurity incident. Measures include new customer protection programs, investments in information protection, and the rollout of additional security services. The company has also committed to supporting its data center growth with partners and new commercial offerings.
Operational and commercial benefits expected
The combination of Schneider Electric’s MEP systems and ETAP software with SK Telecom’s AI DCIM is designed to deliver clearer power visibility, faster commissioning through prefabrication, and tighter operational control. These elements aim to reduce build time, lower operating costs and support new energy and storage solutions as AI workloads expand.
Next steps
Both companies will proceed with equipment procurement, digital integration and pilot implementations. The working group will continue to develop reference designs and prefabricated modules, while the group-level MoU will guide joint product development and coordinated procurement across affiliates.
Frequently Asked Questions
What did SK Telecom and Schneider Electric agree to?
They signed an integrated procurement agreement for MEP equipment and solutions for the SK AIDC in Ulsan and an MoU to expand cooperation across SK Group, including joint UPS and ESS development.
What is ETAP and how will it be used?
ETAP is digital twin software for power systems. It will be integrated into SK Telecom’s AI DCIM to enable digital twin-based operational optimization, real-time monitoring and power-system analysis.
Which MEP categories are included?
The agreement covers five MEP categories, with examples listed as switchgear, UPS, transformers and automated control systems.
When will the Ulsan AI data center start operating?
The Ulsan AIDC is planned to begin operations in 2027.
How does this deal affect SK Group affiliates?
The MoU aims to coordinate procurement and jointly develop power and storage technologies across affiliates, using SK On battery tech to support UPS and ESS projects and to seek group-wide efficiencies.
Key features at a glance
| Feature | Details |
|---|---|
| Procurement scope | MEP equipment across five categories including switchgear, UPS, transformers and automated control systems |
| Digital integration | ETAP digital twin integrated into SK Telecom’s AI DCIM for operational optimization |
| Working group focus | Integration, MEP reference designs, prefabrication, design and construction services, EaaS sales |
| Group-level MoU | Joint UPS and ESS development leveraging SK On lithium-ion batteries; coordinated procurement across affiliates |
| Ulsan AIDC timeline | Planned start of operations in 2027; combined capacity with Guro facility to exceed 300 MW |
| Strategic aim | Improve data center efficiency, shorten build times, expand AI infrastructure and commercial offerings |
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
Author: Construction CA News
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