Schneider Electric Invests $700 Million in US Operations to Power AI Boom

Schneider Electric chases AI hype with $700M US expansion

Schneider Electric plans to spend $700 million through 2027 to expand its US operations and bolster the supply of its power equipment necessary to sustain the proliferation of AI datacenters. The investment, Schneider's largest single capital splurge in America, comes as bit-barn builders grapple with shortages of key power and thermal management equipment. As we reported last week, lead times for datacenter physical infrastructure now average 28 weeks for many electrical and thermal systems, with chillers, transformers, switchgears, and generators -- all things, we note Schneider Electric manufactures -- taking considerably longer. To address these needs, over the next two years, Schneider hopes to open new facilities or modernize existing ones across at least eight sites in six states - Tennessee, Massachusetts, Texas, North Carolina, Missouri, and Ohio - and hire 1,000 workers in manufacturing, engineering, development, and technical analysis roles. These efforts will include ramping up the production of power switching and distribution equipment, circuit breakers, and other "medium-voltage" systems, alongside establishing test and research facilities specific to robotics and AI datacenters. In addition to capitalizing on AI infrastructure demand, by bolstering US manufacturing, the French multinational no doubt sees an opportunity to sidestep the Trump administration's obsession with tariffs. Schneider's US expansion comes a week after Nvidia CEO Jensen Huang set the tone for the next generation of "AI factory" datacenters purpose-built to train and run machine-learning workloads. Today, Nvidia's rack-scale systems, like its Blackwell Ultra GB300 NVL72 announced at GTC, top out at around 120kW per rack. However, by the end of 2027, Nvidia wants to cram upwards of 600kW of compute into a single densely-packed rack containing 576 GPUs. In order to achieve this goal, Huang emphasized the rest of the industry needs to catch up. Schneider Electric, for its part, is already working with Nvidia to develop datacenter reference designs optimized for AI workloads. At GTC last week, the two companies revealed their work on a digital twin that simulates the operations of an AI datacenter. The idea is these simulations will help operators to predict energy needs and adjust the design accordingly -- something that will no doubt come in handy as hyperscalers and cloud providers begin deploying Blackwell accelerators in volume later this year. Speaking of which, Apple may be cozying up to Nvidia as well. A research note from Loop Capital claims the iGiant is in the process of placing an order for roughly $1 billion of Nvidia's new GB300 NVL72 systems, which are said to be selling for between $3.7 and $4 million apiece if the report is to be believed. The Register reached out to Apple and Loop Capital for comment; we'll let you know if we hear anything back. Similar to Schneider, Apple earlier pledged a hefty $500 billion toward US operations - including manufacturing - over the next four years. These investments include a new facility in Texas that will produce AI-accelerated servers to power its Apple Private Cloud Platform and the so-far-fabled Apple Intelligence services. From what we understand, these systems will use the iGiant's custom silicon, but it's possible Apple is interested in Nvidia's kit for something like model training as well. ®

Schneider Electric to invest over $700 million in US to power AI boom

March 25 (Reuters) - Schneider Electric (SCHN.PA), opens new tab said on Tuesday it plans to invest over $700 million in its U.S. operations over the next two years amid tariff threats that could affect the French electrical equipment maker. The company said the investment, to be made through 2027, will focus on bolstering the U.S. energy infrastructure to power AI growth, boost domestic manufacturing and strengthen energy security. Since his inauguration, U.S. President Donald Trump has announced tariffs on multiple commodities from aluminium to steel, and pharmaceuticals to semiconductor chips. The looming threat has compelled companies including Eli Lilly (LLY.N), opens new tab, and Apple (AAPL.O), opens new tab to expand manufacturing domestically. Schneider will upgrade, expand and open several facilities across the U.S. including in Tennessee, Massachusetts, Texas, Missouri, Ohio, and North & South Carolinas as part of the planned investment. It also expects to create over 1,000 new jobs. Coupled with the $440 million already announced since 2020 to strengthen its U.S. supply chain, the company's U.S. investment is set to surpass $1 billion this decade. "We stand at an inflection point for the technology and industrial sectors in the U.S., driven by incredible AI growth and unprecedented energy demand," Aamir Paul, President of North America Operations for Schneider Electric, said in a statement. Reporting by Mrinalika Roy in Bengaluru; Editing by Sahal Muhammed Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

France's Schneider Electric announces $700 mn investment in US for AI and energy

Paris (AFP) - French electrical equipment company Schneider Electric said on Wednesday it plans to invest "more than $700 million" in the United States by 2027 to boost energy security and the growth of artificial intelligence. The company, which generates more than a third of its revenue in the United States, intends to "support the country's focus on bolstering the nation's energy infrastructure to power AI growth, boost domestic manufacturing, and strengthen energy security", according to a press release. "This new planned investment is expected to create over 1,000 new jobs and help Schneider Electric continue to play a leading role in shaping a more innovative, affordable, and energy-efficient future in the U.S.", it said. The French company already employs 21,000 staff in the country. Schneider's announcement comes amid President Donald Trump's promise to impose "reciprocal" customs duties on all US trading partners, in the hope of attracting more foreign manufacturers. "Schneider Electric's significant investment is a clear sign that manufacturing in America is moving forward -- driving economic growth, innovation and job creation across the country," National Association of Manufacturers President Jay Timmons was quoted as saying in the communique.

Schneider Electric to invest over $700 million in US to power AI boom

Schneider will upgrade, expand and open several facilities across the US including in Tennessee, Massachusetts, Texas, Missouri, Ohio, and North & South Carolinas as part of the planned investment. It also expects to create over 1,000 new jobs. Coupled with the $440 million already announced since 2020 to strengthen its US supply chain, the company's U.S. investment is set to surpass $1 billion this decade.Schneider Electric said on Tuesday it plans to invest over $700 million in its U.S. operations over the next two years amid tariff threats that could affect the French electrical equipment maker. The company said the investment, to be made through 2027, will focus on bolstering the U.S. energy infrastructure to power AI growth, boost domestic manufacturing and strengthen energy security. Since his inauguration, US President Donald Trump has announced tariffs on multiple commodities from aluminium to steel, and pharmaceuticals to semiconductor chips. The looming threat has compelled companies including Eli Lilly, and Apple to expand manufacturing domestically. Schneider will upgrade, expand and open several facilities across the US including in Tennessee, Massachusetts, Texas, Missouri, Ohio, and North & South Carolinas as part of the planned investment. It also expects to create over 1,000 new jobs. Coupled with the $440 million already announced since 2020 to strengthen its US supply chain, the company's U.S. investment is set to surpass $1 billion this decade. "We stand at an inflection point for the technology and industrial sectors in the U.S., driven by incredible AI growth and unprecedented energy demand," Aamir Paul, President of North America Operations for Schneider Electric, said in a statement.

Schneider Electric to invest over $700 million to boost U.S. AI growth By Investing.com

Investing.com -- Schneider Electric, a global leader in energy management and automation, unveiled plans on Tuesday to invest more than $700 million in its U.S. operations by 2027. This commitment represents the company's largest single capital expenditure in the U.S. in over 135 years and aims to support the nation's focus on enhancing energy infrastructure to accommodate AI growth, domestic manufacturing, and energy security. The investment is set to create over 1,000 new jobs and will contribute to Schneider Electric's (EPA:SCHN) role in shaping an energy-efficient future in the U.S. The planned investment will exceed $1 billion so far this decade, including previous investments made in 2023 and 2024 to strengthen Schneider Electric's North American supply chain. The expansion will address robust customer demand for solutions that enhance energy efficiency, scale industrial automation, and ensure a more reliable grid. It will also involve manufacturing expansions and job growth in various segments, including data centers, utilities, manufacturing, and energy infrastructure. Aamir Paul, President of North America Operations for Schneider Electric, emphasized the critical juncture for the U.S. technology and industrial sectors, driven by AI growth and energy demand. "To lead the transformation ahead, we must be agile and act now to advance ambitious digitalization and efficiency goals to make an impact for generations to come," Paul stated. He highlighted the investment as a milestone in the company's responsible investment strategy, reflecting its commitment to U.S. manufacturing and technological innovation. The National Association of Manufacturers (NAM) and the National Electrical Manufacturers Association (NEMA) lauded Schneider Electric's significant investment. NAM President and CEO Jay Timmons noted the investment as a driver of economic growth and job creation, while NEMA President and CEO Debra Phillips recognized the investment's role in meeting rising energy demand and powering an electric future. Schneider Electric's investment will fund facility upgrades, expansions, and new openings across the U.S., including in Mt. Juliet, Tennessee; Andover, Massachusetts; Columbia, Missouri; Fairfield, Ohio; El Paso and Houston, Texas; Raleigh and Welcome, North Carolina. These developments will help Schneider Electric maintain its leadership in smart factory transformations, energy efficiency solutions, and supply chain capabilities. Concurrently, Schneider Electric introduced its One Digital Grid Platform and announced its membership in EPRI's DCFlex initiative. These efforts are part of the company's commitment to grid modernization and exploring how data centers can support the electric grid. The announcements were made at the DISTRIBUTECH 2025 conference in Dallas. Schneider Electric, with North America as its largest region, employs over 21,000 U.S. workers, operates over 20 smart factories and distribution centers, and collaborates with 40% of Fortune 500 companies.

Schneider Electric to invest over $700 million in US to power AI boom

(Reuters) - Schneider Electric said on Tuesday it plans to invest over $700 million in its U.S. operations over the next two years amid tariff threats that could affect the French electrical equipment maker. The company said the investment, to be made through 2027, will focus on bolstering the U.S. energy infrastructure to power AI growth, boost domestic manufacturing and strengthen energy security. Since his inauguration, U.S. President Donald Trump has announced tariffs on multiple commodities from aluminium to steel, and pharmaceuticals to semiconductor chips. The looming threat has compelled companies including Eli Lilly, and Apple to expand manufacturing domestically. Schneider will upgrade, expand and open several facilities across the U.S. including in Tennessee, Massachusetts, Texas, Missouri, Ohio, and North & South Carolinas as part of the planned investment. It also expects to create over 1,000 new jobs. Coupled with the $440 million already announced since 2020 to strengthen its U.S. supply chain, the company's U.S. investment is set to surpass $1 billion this decade. "We stand at an inflection point for the technology and industrial sectors in the U.S., driven by incredible AI growth and unprecedented energy demand," Aamir Paul, President of North America Operations for Schneider Electric, said in a statement. (Reporting by Mrinalika Roy in Bengaluru; Editing by Sahal Muhammed)