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 and Schneider Electric Agree on MEP Supply and Digital-twin Integration for Ulsan AI Data Center
SK Telecom has signed a comprehensive procurement deal with Schneider Electric to provide mechanical, electrical and plumbing (MEP) equipment and solutions for the new SK AIDC in Ulsan. The agreement covers major power and control components and includes a planned digital-twin integration to improve operational efficiency. This deal is the first major, concrete outcome of the partnership the two companies announced at Mobile World Congress 2025.
Key deal elements
The supplier will provide MEP equipment across five main categories, including switchgear, uninterruptible power supply (UPS), transformers, and automated control systems. Schneider Electric will also integrate its Electrical Transient Analyzer Program (ETAP) digital-twin software into SK Telecom’s unified AI Data Center Infrastructure Management (AI DCIM) platform. The ETAP–AI DCIM integration is intended to support real-time monitoring and digital twin–based operational optimisation of power and infrastructure use.
Why the integration matters
Combining ETAP’s design, analysis and operation capabilities with SK Telecom’s AI DCIM aims to enable more accurate power modelling, faster response to system events and continuous operational tuning. The integrated setup is positioned to help maximise utilization and reduce energy waste, a key concern for large-scale AI data centers.
Wider collaboration and scope
Since the initial partnership announcement in March, the two companies have formed a working group. That group is collaborating on multiple fronts: integrating and commercialising the AI DCIM together with Schneider’s automated control systems; developing MEP reference designs; delivering prefabricated and integrated solutions to shorten construction timelines; and expanding joint sales efforts for Energy-as-a-Service offerings.
A Memorandum of Understanding (MoU) signed alongside the procurement deal broadens cooperation across affiliates within the SK Group. Under the MoU, the partners will pursue joint development of UPS and Energy Storage System (ESS) technologies, leveraging lithium-ion battery expertise from an SK Group battery affiliate. The plan also foresees coordinated procurement across group affiliates to capture volume synergies and drive broader adoption of standardized MEP solutions.
Project timeline and scale
The Ulsan AI data center is scheduled to begin operations in 2027. Once online, the Ulsan facility together with the Guro data center in Seoul will bring SK Telecom’s total data center capacity to more than 300 megawatts. The company expects its AIDC business to generate annual revenue of over KRW 1 trillion by 2030 as utilization improves and additional services scale.
Commercial and technical drivers
The procurement and systems integration are driven by rising demand for AI compute and the need to accelerate construction while keeping operating costs and energy use under control. Prefabricated MEP components and integrated control systems are intended to reduce build time and lower the risk of on-site errors. The integration of ETAP into the AI DCIM platform aims to turn planning models into live operational tools that support capacity planning, fault detection and energy optimisation.
Leadership and strategic framing
Senior executives at both companies describe the agreement as a milestone in building a next-generation, efficient AI data center ecosystem and as aligned with SK Telecom’s broader strategy of combining self-reliance with external cooperation. The partnership is slated to support not only the Ulsan build but also planned expansions, including work on another regional AI data center and a gigawatt-scale roadmap across SK Group assets.
Context within SK Telecom’s business
SK Telecom reported Q2 2025 consolidated revenue of KRW 4.3388 trillion, with operating income of KRW 338.3 billion and net income of KRW 83.2 billion. The company has been growing its AI business lines, with AIDC revenue increasing and AI-related services contributing to expanded B2B solutions. In parallel, the company has announced a multi-pronged cybersecurity and customer assurance program following a recent incident and has committed significant investment to enhance information protection systems.
What to watch next
Key upcoming milestones include final delivery schedules for the MEP equipment, the timeline for ETAP integration into live AI DCIM operations, prefabrication tests that aim to shorten construction cycles, and joint commercial initiatives to expand Energy-as-a-Service offerings. Observers will also track how the joint UPS and ESS development progresses and whether coordinated procurement across the broader group brings measurable cost and delivery advantages.
FAQ
What does the SK Telecom–Schneider Electric agreement cover?
The agreement covers integrated procurement of MEP equipment across five categories, including switchgear, UPS, transformers and automated control systems, plus integration of digital-twin software into SK Telecom’s AI DCIM platform.
What is ETAP and how will it be used?
ETAP is digital-twin software for power systems that supports design, analysis and operation stages. It will be integrated into the AI DCIM to enable digital twin–based operational optimisation and real-time monitoring of power consumption.
When will the Ulsan AI data center begin operations?
The Ulsan data center is scheduled to start operations in 2027.
How does this deal affect SK Group affiliates?
A Memorandum of Understanding extends collaboration across SK Group affiliates and includes joint development of UPS and energy storage systems using group battery technology and coordinated procurement to capture synergies.
What benefit is expected from prefabricated solutions?
Prefabricated and integrated solutions aim to significantly reduce construction timelines, lower on-site risk and speed up commissioning of critical infrastructure.
Key features at a glance
| Feature | What it is | Expected impact |
|---|---|---|
| MEP procurement | Supply of switchgear, UPS, transformers, control systems and other categories | Standardised equipment for faster construction and reliable operations |
| ETAP–AI DCIM integration | Digital-twin for power system modelling linked to real-time DCIM | Improved monitoring, predictive operations and energy optimisation |
| Prefabricated solutions | Off-site built MEP modules and integrated units | Shorter build times and reduced on-site errors |
| Joint UPS & ESS development | Co-development using lithium-ion battery technology from a group affiliate | Customized energy storage and backup systems with local battery expertise |
| Energy-as-a-Service expansion | Collaborative sales of managed energy solutions | New recurring revenue streams and bundled services for customers |
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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