Why SK Telecom & Schneider Have Expanded AI Data Centre Deal

The collaboration between SK Telecom and Schneider Electric is entering a new phase in the telecommunications sector, as the two organisations deepen their partnership in building advanced AI data centre (AIDC) infrastructure.

At the centre of the agreement lies the development of SK Telecom’s flagship AIDC in Ulsan, supported by Schneider Electric’s proven expertise in mechanical, electrical and plumbing (MEP) solutions.

The partnership highlights the significant role it plays in advancing AI-driven data centres, specifically tailored to meet the demanding needs of telecommunications networks and services.

Expanding on the MWC25 announcement

The partnership was first unveiled at Mobile World Congress 2025 (MWC25) and has now reached its first concrete outcome. SK Telecom has confirmed that it has signed a comprehensive, integrated procurement agreement with Schneider Electric to supply MEP equipment across five critical categories.

These include switchgear, Uninterruptible Power Supply (UPS) systems, transformers and automated control solutions.

Schneider Electric, widely recognised as a global leader in data centre power and energy systems, brings an extensive portfolio spanning design, implementation and ongoing operations.

A broader vision through a new memorandum of understanding

The depth of the partnership was further reinforced with the signing of a Memorandum of Understanding (MoU) extending collaboration beyond SK Telecom to SK Group affiliates, opening the way for cross-sector innovation.

The focus areas include jointly developing next-generation MEP solutions and advanced battery technologies, with the intention of delivering energy-efficient infrastructure for AI-intensive workloads.

Pankaj Sharma, Executive Vice President (EVP) of Schneider Electric said: “This collaboration marks a significant milestone in setting a new standard for AI data centres by leveraging the combined technological expertise and know-how of both companies. Schneider Electric remains committed to working closely with SKT to build a sustainable and efficient next-generation data centre ecosystem."

Ryu Young-sang, President and CEO of SK Telecom, stated: “Our partnership with Schneider Electric and the deepening of this strategic collaboration are expected to not only to support the construction of the Guro AIDC and the gigawatt-scale expansion of the SK AIDC in Ulsan, but also to create synergies across the SK Group affiliates, driving mutual growth at the highest-level.

Leveraging digital twin capabilities

A central element of the agreement involves Schneider Electric’s Electrical Transient Analyzer Program (ETAP), which integrates with SK Telecom’s unified AI Data Centre Infrastructure Management (DCIM) system.

ETAP is a leading digital twin platform for power systems that enables end-to-end optimisation from design through to operation.

By harnessing ETAP, SK Telecom can simulate, predict and refine the performance of energy and infrastructure under varying conditions.

It allows proactive management, minimises risk and enables the AIDC to operate with enhanced resilience.

A spokesperson for the project highlighted: “The integration of ETAP with SK Telecom’s AI DCIM creates a digital twin-based approach that will redefine operational optimisation in data centre environments.”

Driving efficiency in AI data centres

The AI DCIM platform aims to play a pivotal role by monitoring power consumption and infrastructure utilisation in real time. With intelligent tools for predictive modelling and dynamic management, SK Telecom seeks to push the boundaries of sustainability and performance in data centre operations.

Data centre operators face increasing pressure to meet the challenges of both escalating energy demands and strict environmental targets. The SK-Schneider partnership is viewed as offering a practical model for other operators, combining telecoms expertise with industrial energy solutions.

Positioning for the next generation of connectivity

For the broader telecommunications industry, the agreement marks a significant shift in the market. The rise of AI workloads is driving changes in data centre design, requiring higher density, better resilience and more efficient energy management.

By developing the Ulsan AIDC using Schneider Electric’s advanced MEP solutions and SCADA integration, SK Telecom is positioning itself as a leader in this transition.

SK Telecom’s collaboration with Schneider Electric reflects the benefits of global partners that specialise in power, automation and sustainability.

The enhanced collaboration between SK Telecom and Schneider Electric demonstrates clear intent: to establish a blueprint for future-ready AI data centres. Agreements covering procurement, digital twin integration and cross-sector innovation, the Ulsan AIDC project stands as a benchmark in telecommunications-led infrastructure development.