Schneider expands data centre offerings with $850 million deal

The French firm invests in liquid cooling for growing AI demand.

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Schneider Electric has announced an $850 million deal to acquire a 75% controlling stake in Motivair Corp, a US company specialising in liquid cooling solutions for high-performance computing. The French firm expects to complete the all-cash deal in the coming quarters, with plans to acquire the remaining stake by 2028. The acquisition is part of Schneider’s strategy to expand its offerings for the rapidly growing data centre market, which increasingly demands efficient cooling solutions for technologies like generative AI.

Motivair, located in Buffalo, New York, manufactures advanced cooling systems that pump coolant directly near chips, efficiently managing the heat produced by high-performance computing—something traditional air cooling struggles to do. Schneider CEO Peter Herweck emphasised the expansion of the data centre and networks sector, which accounted for 21% of the company’s 2023 orders, approximately 8 billion euros. He also noted strong global demand for these technologies.

Herweck stated that Schneider is not actively pursuing further acquisitions in the data centre sector but remains open to opportunities as they emerge. The company’s shares have climbed 31% this year, driven by its strong market presence and the growing demand for advanced cooling solutions in data centres.