1 month ago
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- Schneider Electric pay $850 million for a controlling stake in Motivair Corp.
- Schneider not actively looking for further deals for its data center.
What happen
Schneider Electric has announced its acquisition of a controlling stake in Motivair Corp for about $850 million. This all-cash deal will give Schneider a 75% ownership in the U.S.-based company. They plan to acquire the remaining shares by 2028. This strategic move addresses the rising demand for efficient cooling solutions in data centers. The surge in generative AI and large language models like ChatGPT increases heat generation.
Motivair specializes in high-pressure liquid cooling systems that cool servers by delivering coolant directly to the chips. This method outperforms traditional air cooling systems. CEO Peter Herweck stated this acquisition will enhance Schneider’s direct-to-chip liquid cooling and thermal systems. These capabilities are crucial for meeting the power demands of modern data centers.
Also read:https://btw.media/it-infrastructure/schneider-to-work-with-nvidia-to-optimize-data-centre-infrastructure/
Also read: https://btw.media/tech-trends/bdx-data-centers-unveils-phase-1-of-advanced-ai-campus/
Why it’s important
Schneider Electric SE is a French multinational focused on digital automation and energy management. It is a Fortune Global 500 company, publicly traded on the Euronext Exchange, and part of the Euro Stoxx 50 index. The data center market contributes around €8 billion in sales for Schneider. This segment is growing rapidly, mirroring trends in the U.S., where data center power use may triple by 2030.
As the largest data center market, the U.S. is experiencing rising demand. Schneider’s investment in Motivair positions it well to benefit from this growth. The company’s stock has risen 31% this year, reflecting investor confidence in its strong market position and data center prospects.
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