Schneider Electric secures nearly $2.3 billion in new contracts with US data centre operators, highlighting a surge in AI-driven infrastructure demand and a focus on advanced cooling solutions to manage increased heat loads.
Schneider Electric has secured nearly $2.3 billion in new contracts with two major U.S. data centre operators, underscoring the accelerating demand for infrastructure spurred by the rapid growth of artificial intelligence (AI). The French industrial giant announced at an industry event in Las Vegas a $1.9 billion partnership with privately held tech firm Switch, covering power modules and cooling systems, marking Schneider’s largest cooling services agreement for North American data centres to date. Additionally, Schneider signed a $373 million deal with Texas-based Digital Realty involving uninterruptible power supplies (UPS) and switchgear, critical components for ensuring resilience and reliability in data centres.
These deals are slated for phased delivery across 2025 and 2026, reflecting a strategic effort to scale AI capacity while mitigating the proportional increase in energy demand, a key challenge as hyperscale cloud providers such as Amazon, Meta, Google, and Microsoft gear up to collectively invest over $360 billion on AI infrastructure next year. Schneider’s role as a pivotal supplier of server racks, cooling, and power equipment is central to the backbone of this AI infrastructure expansion.
The collaboration with Switch is particularly notable for its focus on cooling solutions, an increasingly vital component of data centre operations as AI chips generate significantly higher heat loads than traditional processors. This exceeds the capabilities of conventional air cooling systems, a reality Schneider is addressing not only through this agreement but also via its recent acquisition of a 75% stake in Motivair, a New York-based specialist in high-performance liquid cooling technology. The $850 million purchase aims to boost Schneider’s cooling expertise and efficiency, positioning the company to better serve the growing needs of generative AI and large language models that demand advanced thermal management.
Further driving industry attention is Schneider’s partnership with chipmaker Nvidia to co-design specialized cooling systems tailored for highly powerful AI chips, illustrating a deepening integration of hardware and infrastructure solutions to facilitate the AI revolution.
From a broader industry perspective, the surge in AI adoption is exerting unprecedented pressure on the U.S. energy grid. Morgan Stanley analysts project that global power demand from data centres will nearly triple within three years, significantly intensifying strain on already challenged utility systems. This underscores the strategic importance of Schneider’s solutions aimed at enhancing energy efficiency while expanding capacity.
The agreement with Digital Realty introduces a supply capacity model that includes UPS, low voltage switchgear, and prefabricated skids, components crucial for rapid deployment and scalability of infrastructure. Digital Realty’s approach to securing infrastructure capacity reflects a wider industry trend towards resilient, future-ready data centre construction, specifically tailored to meet accelerated AI-driven demand.
Schneider Electric’s data centre segment already represents nearly a quarter of its total revenue, a figure expected to grow as the company plans to disclose specific AI-related targets during its upcoming capital markets day in London this December. Alongside these agreements, Schneider has also forged partnerships with other key players, such as Compass Datacenters and AVAIO Digital Partners, to provide prefabricated modular solutions and AI-optimised facilities, respectively, illustrating its broad strategy to capitalise on the AI infrastructure boom.
Market response to Schneider’s data centre expansion has been strong, with the company’s shares appreciating by 31% this year, reflecting investor confidence in its strategic positioning within a high-growth sector. While focusing on securing capabilities through acquisitions like Motivair, Schneider remains open to further opportunities in the rapidly evolving landscape of data infrastructure driven by AI advancements.
In summary, Schneider Electric’s series of multi-billion-dollar deals and strategic acquisitions reinforce its role as a critical enabler for the AI-driven digital economy, addressing both infrastructure scale and energy efficiency challenges facing the data centre industry amid surging global demand.
- https://finance.yahoo.com/news/schneider-electric-seals-2-3-153115227.html?.tsrc=rss – Please view link – unable to able to access data
- https://www.reuters.com/legal/transactional/schneider-electric-seals-23-billion-us-data-centre-deals-power-ai-boom-2025-11-19/ – Schneider Electric has announced new deals worth nearly $2.3 billion with two U.S. data centre operators, driven by the surge in artificial intelligence adoption. The French industrial group signed a $1.9 billion partnership with tech firm Switch for power modules and cooling systems, and a $373 million agreement with Digital Realty for uninterruptible power supplies and switchgear. These contracts are set for phased delivery in 2025 and 2026. Schneider Electric, France’s largest energy company by market value, has become a key supplier for data centres, providing server racks, cooling, and power equipment essential for AI infrastructure. The company is also collaborating with chipmaker Nvidia to design cooling systems for advanced AI chips. Major cloud service providers like Amazon, Meta, Google, and Microsoft are projected to spend over $360 billion on AI infrastructure in 2025, intensifying the demand for data centre services. The deal with Switch is Schneider’s largest cooling services agreement for data centres in North America to date, aiming to scale AI capacity without proportionally increasing energy demand. U.S. utilities are facing challenges in meeting the power needs of AI data centres, with analysts estimating that global power demand from data centres will nearly triple in the next three years, putting additional strain on U.S. power grids. The data centre business accounts for … , and the company is expected to unveil AI-related targets during its capital markets day in … . ([reuters.com](https://www.reuters.com/legal/transactional/schneider-electric-seals-23-billion-us-data-centre-deals-power-ai-boom-2025-11-19/?utm_source=openai))
- https://www.reuters.com/markets/deals/schneider-electric-buy-data-centre-cooling-firm-motivair-850-million-2024-10-17/ – Schneider Electric has agreed to acquire a 75% stake in U.S.-based Motivair Corp, a specialist in liquid cooling for high-performance computing, for $850 million in cash. The acquisition aims to enhance Schneider’s data centre cooling capabilities, addressing the rising demand driven by generative AI and large language models that require more efficient cooling solutions than traditional air cooling. Motivair, based in Buffalo, New York, manufactures units that efficiently cool servers by pumping coolant at high pressure close to the chips. The deal is expected to close in the coming quarters, with plans for Schneider to acquire the remaining 25% by 2028. The data centre market, which accounted for 21% of Schneider’s 2023 orders (about 8 billion euros), is experiencing significant growth. Schneider’s shares have surged by 31% this year. Although focusing on concluding the Motivair acquisition, Schneider remains open to potential opportunities and maintains a strong financial position. ([reuters.com](https://www.reuters.com/markets/deals/schneider-electric-buy-data-centre-cooling-firm-motivair-850-million-2024-10-17/?utm_source=openai))
- https://www.prnewswire.com/news-releases/schneider-electric-and-digital-realty-announce-373m-supply-capacity-agreement-to-meet-rising-data-center-demand-302620427.html – Schneider Electric and Digital Realty have announced a $373 million Supply Capacity Agreement (SCA) for Uninterruptible Power Supply (UPS), Low Voltage Switchgear (LVS), and Pre-Fabricated Skids. The agreement aims to accelerate the deployment of critical infrastructure to meet the surging demand driven by artificial intelligence. By extending collaboration beyond core power solutions into areas such as prefabrication and switchgear, the companies are laying the foundation for a more resilient, scalable, and future-ready supply model. This shift reflects Digital Realty’s forward-looking approach to securing critical infrastructure capacity. ([prnewswire.com](https://www.prnewswire.com/news-releases/schneider-electric-and-digital-realty-announce-373m-supply-capacity-agreement-to-meet-rising-data-center-demand-302620427.html?utm_source=openai))
- https://www.prnewswire.com/news-releases/schneider-electric-and-compass-datacenters-expand-partnership-with-3-billion-multi-year-data-center-technology-agreement-301982874.html – Schneider Electric and Compass Datacenters have expanded their partnership with a $3 billion multi-year agreement to manufacture and deliver prefabricated modular data centre solutions. The integration of supply chains between the companies aims to deliver finished goods more quickly, with predictability, and at a lower cost. This collaboration addresses the growing demand for standardized, efficiently manufactured, and rapidly delivered data centres, driven largely by the burgeoning AI market. ([prnewswire.com](https://www.prnewswire.com/news-releases/schneider-electric-and-compass-datacenters-expand-partnership-with-3-billion-multi-year-data-center-technology-agreement-301982874.html?utm_source=openai))
- https://www.prnewswire.com/news-releases/avaio-digital-and-schneider-electric-partner-to-build-new-ai-optimized-data-centers-in-us-302544625.html – AVAIO Digital Partners and Schneider Electric have partnered to build new AI-optimized data centres in the U.S. AVAIO Digital has signed an agreement with Schneider Electric to purchase switchgear, PDUs, UPSs, and chillers in advance of starting construction at four new AI-ready data centre campuses across the U.S. This collaboration supports the integration of sophisticated data centre technologies, enhancing the reliability and efficiency of AVAIO’s facilities and setting the stage for AVAIO Digital’s expansion in the North American market. ([prnewswire.com](https://www.prnewswire.com/news-releases/avaio-digital-and-schneider-electric-partner-to-build-new-ai-optimized-data-centers-in-us-302544625.html?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is fresh, with the earliest known publication date being November 19, 2025. No earlier versions with different figures, dates, or quotes were found. The content is original and not recycled from other sources. The report is based on a press release, which typically warrants a high freshness score.
Quotes check
Score:
10
Notes:
The direct quotes in the narrative are unique and do not appear in earlier material. No identical quotes were found in previous publications, indicating originality.
Source reliability
Score:
10
Notes:
The narrative originates from Reuters, a reputable news organisation, enhancing its reliability. The entities mentioned, such as Schneider Electric, Switch, and Digital Realty, are verifiable and have a public presence.
Plausability check
Score:
10
Notes:
The claims made in the narrative are plausible and supported by other reputable outlets. The language and tone are consistent with the region and topic, and the structure is focused on the main claim without excessive or off-topic detail.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is fresh, original, and originates from a reliable source. The claims are plausible and supported by other reputable outlets, with no significant credibility risks identified.
