Schneider Electric Signs $2.3B US Data Centre Deals

Schneider signs two deals with US data centre operators
New agreements expected to generate nearly $2.3 billion in sales
Company says its solution can scale AI capacity without raising power demand

Schneider Electric has announced agreements worth nearly $2.3 billion with two U.S. data centre operators, reflecting the rising infrastructure needs of artificial intelligence. At an industry event in Las Vegas, the French energy group revealed a $1.9 billion partnership with Switch, focused on power modules and cooling systems. A second deal valued at $373 million was signed with Texas-based Digital Realty, covering uninterruptible power supplies and switchgear. Deliveries under both contracts are scheduled in phases across 2025 and 2026.

Expanding Role in AI Infrastructure

France’s largest energy company by market value has become a key supplier to data centres, producing racks, cooling systems, and power equipment essential for AI operations. Schneider is also collaborating with Nvidia to design cooling solutions for advanced AI chips. Hyperscale cloud providers including Amazon, Meta, Google, and Microsoft are accelerating investments, with combined spending projected to exceed $360 billion in 2025. These developments highlight the growing importance of specialized infrastructure to support AI workloads.

The deal with Switch marks Schneider’s largest cooling services agreement in North America to date. Company executives said the solutions provided are designed to expand AI capacity without proportionally increasing energy consumption. Vandana Singh, senior vice president of Schneider’s North American secure power division, noted that existing data centre infrastructure was not built to meet AI’s demands. The company aims to position itself as a critical partner in addressing these challenges.

Pressure on Energy Grids

The rapid expansion of AI data centres is straining U.S. utilities. Analysts at Morgan Stanley estimate that global power demand from data centres will nearly triple within three years. This surge is expected to intensify pressure on already stretched energy grids. Schneider’s technology is being promoted as a way to manage efficiency while scaling capacity.

Data centres already contribute nearly a quarter of Schneider’s total revenue. Financial analysts expect the company to announce new targets linked to AI development during its capital markets day in London on December 11. The agreements with Switch and Digital Realty reinforce Schneider’s role in shaping the infrastructure behind AI adoption. They also underline the intersection of technology growth and energy management.

Industry Outlook

AI’s rapid rise is reshaping the priorities of infrastructure providers worldwide. Companies are racing to build facilities capable of handling the computational intensity of generative models and other advanced applications. Cooling and power systems are central to this effort, as efficiency gains are critical to offset soaring energy requirements. Schneider’s latest deals illustrate how industrial suppliers are adapting to meet these demands.