- SK Telecom signs integrated procurement deal with Schneider Electric for critical mechanical, electrical and plumbing (MEP) infrastructure to underpin its AI-dedicated data centre in Ulsan, South Korea.
- The collaboration includes digital twin software integration, energy-as-a-service development and SK Group-wide innovation via a new Memorandum of Understanding.
What happened: SK Telecom partnership with Schneider Electric to build AI data centre in Ulsan
SK Telecom has entered into a comprehensive procurement agreement with Schneider Electric for the construction of its AI-dedicated data centre (AIDC) in Ulsan, South Korea. The French engineering giant will supply critical MEP infrastructure across five key categories: switchgear, uninterruptible power supplies (UPS), transformers, and automated control systems.
This marks the first concrete outcome from the memorandum announced at the Mobile World Congress in March 2025. Schneider Electric’s digital twin software—Electrical Transient Analyzer Program (ETAP)—will be integrated into SK Telecom’s unified AI Data Centre Infrastructure Management (DCIM) platform, enabling real-time modelling and optimisation of power systems.
Since the initial announcement, the two companies have set up a working group to drive collaboration in areas including reference MEP designs, prefabricated solutions to accelerate construction timelines, and the expansion of Energy-as-a-Service (EaaS) offerings.
Further, a Memorandum of Understanding extends the collaboration across other SK Group affiliates. This covers co-development of UPS and Energy Storage Systems leveraging SK On’s lithium-ion battery technology, aiming to harness economies of scale across group-wide MEP demands.
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Why it’s important
This deal represents more than mere construction—it signals a new era in telecom-led AI infrastructure. Ulsan, a major industrial city in South Korea, now becomes home to an AI data centre built on principles of operational efficiency, resilience and sustainability.
Integrating ETAP with SK Telecom’s AI DCIM introduces a digital twin approach—from design to live operations—allowing predictive power modelling, risk reduction, and agile management of energy consumption.
The broader collaboration has across SK Group affiliates underscores a strategic shift towards self-reliance and collective innovation. By aligning with Schneider Electric’s global expertise in power and automation, SK Telecom strengthens its competitiveness in AI infrastructure. The synergy also supports SK’s “AI pyramid” strategy and may extend to its Guro AIDC project in parallel.
