diff --git a/.buildkite/daily.yml b/.buildkite/daily.yml
index fc188b25bfd..0751f3de7a7 100644
--- a/.buildkite/daily.yml
+++ b/.buildkite/daily.yml
@@ -3,7 +3,7 @@ steps:
     - .buildkite/run.sh
     env:
       ZEPHYR_TOOLCHAIN_VARIANT: "zephyr"
-      ZEPHYR_SDK_INSTALL_DIR: "/opt/sdk/zephyr-sdk-0.11.4"
+      ZEPHYR_SDK_INSTALL_DIR: "/opt/sdk/zephyr-sdk-0.12.1"
     parallelism: 240
     timeout_in_minutes: 210
     retry:
diff --git a/.buildkite/pipeline.yml b/.buildkite/pipeline.yml
index ac4a4069138..3c9ba2fbb05 100644
--- a/.buildkite/pipeline.yml
+++ b/.buildkite/pipeline.yml
@@ -3,7 +3,7 @@ steps:
     - .buildkite/run.sh
     env:
       ZEPHYR_TOOLCHAIN_VARIANT: "zephyr"
-      ZEPHYR_SDK_INSTALL_DIR: "/opt/sdk/zephyr-sdk-0.11.4"
+      ZEPHYR_SDK_INSTALL_DIR: "/opt/sdk/zephyr-sdk-0.12.1"
     parallelism: 40
     timeout_in_minutes: 180
     retry: