Why Schneider Electric Signed $2.3bn in US Data Centre Deals

Schneider Electric confirms two new contracts with US-based data centre operators that together are expected to bring in nearly US$2.3bn in sales.

The deals mark a step forward in the company's positioning as a core supplier of infrastructure supporting AI.

Two US contracts to deliver power and cooling tech

The company announces the agreements during an industry event in Las Vegas. The largest deal, valued at US$1.9bn, is a partnership with Switch, a privately held technology firm. This agreement covers power modules and cooling systems for its facilities.

The second contract, worth US$373m, is with Texas-headquartered Digital Realty. That agreement focuses on uninterruptible power supplies and switchgear.

A spokesperson for Schneider confirms that both contracts are phased for delivery across 2025 and 2026.

With its growing presence in data centre hardware, Schneider supplies server racks, cooling systems and power equipment. These components form the essential physical infrastructure required for high-performance computing and AI workloads.

The company also works with chipmaker Nvidia to develop advanced cooling systems designed for Nvidia’s most powerful AI processors.

Cooling and power tech at the centre of AI buildout

Hyperscalers continue to invest heavily in infrastructure for AI. Companies like Amazon, Meta, Google and Microsoft are projected to spend more than US$360bn in 2025 alone, according to public filings. 

This has created intense demand for suppliers who can support high-density, high-performance data centre builds at scale.

The agreement with Switch is Schneider’s largest cooling services contract in North America to date. The company says the technologies involved will support higher AI capacity without a proportional increase in energy consumption.

Speaking to Reauters, Vandana Singh, Senior Vice President at Schneider’s North American secure power division, says: "Current data centre infrastructure wasn't built to meet the demands of AI.”

That mismatch between existing data centre design and the demands of generative AI workloads has increased urgency across the sector. 

Power-intensive AI models are testing the capacity of ageing or inadequate systems, requiring new thinking around both power distribution and thermal management.

Power grid strain grows as demand accelerates

Writing on LinkedIn, Attilio Masoch, Cooling Service Business Development Leader at Schneider Electric, says: “These projects will be backed by our unified One Service Team – an integrated, end-to-end team dedicated to seamless execution of start-up, commissioning, maintenance and modernisation of cooling and power solutions.

“We are committed to delivering reliability, efficiency and operational continuity for next-generation critical infrastructure.”

The rise of AI is placing fresh pressure on energy supply across the US. Utilities are struggling to keep up with the rapid expansion of energy-hungry data centre projects.

Analysts at Morgan Stanley estimate that global power demand from data centres will nearly triple over the next three years. This increase is likely to place additional strain on US energy infrastructure, which is already under pressure in some regions.

Schneider’s data centre segment now accounts for almost one quarter of its total revenue. Financial analysts are watching closely for the company’s next strategic moves, especially as it signals increased focus on AI applications.

The company is expected to announce AI-related business targets during its capital markets day in London on 11 December.

By supplying technologies that aim to scale AI workloads while limiting energy use, Schneider positions itself as a partner for hyperscalers navigating the infrastructure and energy challenges brought by artificial intelligence.