Wedoany.com Report-Nov. 20, Schneider Electric (SCHN.PA) announced on Wednesday that it has secured new contracts totaling nearly $2.3 billion with two major U.S. data center operators to supply critical power and cooling equipment, driven by expanding artificial intelligence infrastructure requirements.

The logo of Schneider Electric is seen outside a company building in Nantes, France, September 20, 2022. 

During an industry conference in Las Vegas, the French industrial group revealed a $1.9 billion framework agreement with Switch, a privately held technology infrastructure company. The multi-year deal covers prefabricated power modules, advanced cooling systems, and related services for Switch’s expanding data center portfolio across North America.

A separate $373 million contract was signed with Digital Realty (DLR.N), a Texas-based global data center provider, focusing on uninterruptible power supply systems and medium-voltage switchgear.

Both agreements involve phased deliveries scheduled primarily for 2025 and 2026, a Schneider spokesperson confirmed.

The contracts represent Schneider Electric’s largest North American cooling solutions award to date and underscore the company’s growing role as a key supplier of energy management and automation equipment for high-density computing facilities.

Schneider also collaborates with Nvidia (NVDA.O) on liquid-cooling architectures optimized for the chipmaker’s latest high-performance AI processors, enabling more efficient heat dissipation in next-generation server designs.

“Current data centre infrastructure wasn’t built to meet the demands of AI,” said Vandana Singh, senior vice president of Schneider Electric’s Secure Power Division in North America.

The announced solutions incorporate modular power and cooling technologies that allow operators to increase computing capacity while optimizing energy consumption and physical footprint.

Data center activities now contribute approximately one-quarter of Schneider Electric’s overall revenue, with the segment experiencing sustained double-digit growth as cloud providers and enterprises accelerate AI deployment.

Major technology companies, including Amazon, Meta, Google, and Microsoft, are collectively planning capital expenditures exceeding $360 billion in 2025, largely directed toward AI-enabled infrastructure, according to their latest disclosures.

Industry forecasts indicate that global electricity demand from data centers could nearly triple over the next three years, requiring innovative approaches to power delivery, efficiency, and grid integration.

Schneider Electric’s latest awards demonstrate continued strong order momentum in the hyperscale and colocation segments, where rapid build-out timelines and high reliability standards are essential.

The company is scheduled to provide updated strategic and financial guidance, including specific targets for its data center and AI-related businesses, during its Capital Markets Day in London on December 11.

These contracts further strengthen Schneider Electric’s position as a leading provider of integrated energy management solutions for the fast-growing artificial intelligence infrastructure market in North America and beyond.