Schneider Electric’s $140M Investment in US Facilities to Cater Growing Data Center Demand

Schneider Electric, a global provider of energy management and automation solutions, is planning to invest 140 million dollars in its US manufacturing facilities. The company’s initial investment of $85M will be used to retrofit a 500,000 square foot facility in Mt. Juliet, Tennessee, and to upgrade its Smyrna operations. Here, Schneider Electric will manufacture custom electrical gear and power distribution products to meet the demands of critical infrastructure and data center across the U.S.

This decision is expected to result in approximately 750 additional manufacturing jobs in the United States by 2024. The newly retrofitted factory in Mt. Juliet should begin producing and shipping products to Schneider Electric‘s customers by mid-2024 and be fully operational by 2025. It’s worth mentioning that both facilities will employ state-of-the-art manufacturing software and technologies to improve operations, save energy, and reduce their carbon footprint.

Aamir Paul, President of North America Operations at Schneider Electric, notes, “There has never been a greater need for electrical infrastructure to support advanced computing and technological progress. These investments will support the implementation of the Infrastructure Investment and Jobs Act and Inflation Reduction Act by strengthening domestic supply of products critical to America’s electrification transformation. This positions Schneider Electric as a key driver of the country’s clean energy transition.”

Schneider Electric offers a wide range of data center solutions made in the US designed to enhance sustainability, reliability, and efficiency. Some of their product offerings include Uninterruptible Power Supplies (UPS) systems, which provide continuous power protection against blackouts. They also provide Power Distribution Units (PDUs) for efficient electricity distribution within the data center. Schneider Electric’s cooling solutions optimize data center temperature and humidity while reducing energy consumption; products include EcoBreeze air economizers and InRow cooling.

Furthermore, their Rack Systems provide safe and adaptable hardware environments that support a range of topologies. Real-time monitoring, management, and planning capabilities are made possible by the integration of Schneider Electric’s EcoStruxure for Data Centers data center infrastructure management software with their hardware solutions.

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According to Schneider Electric’s full year 2023 financial results, which were released last month, demand for the company’s sustainability and energy-efficient solutions is still rising. Its expansion in the United States may be attributed to the sustained high demand in both the infrastructure and data center end-markets, with the latter primarily driven by the advancement of artificial intelligence, according to the company itself.

Schneider Electric is dedicated to bolstering its American manufacturing footprint and generating employment opportunities, which includes the investment in Tennessee. In its American manufacturing network, Schneider Electric has made more than $440 million in investments since 2020. Its newest smart manufacturing facility, spanning 160,000 square feet and set to open in El Paso, Texas, in the summer of 2023, is one of these investments.

Schneider Electric has revitalized and automated some of its own production and distribution centers located in various places including Mechanicsburg, Middletown, Lincoln (Nebraska), Lexington (Kentucky), and Lincoln (Nebraska). As per Schneider, these enhancements have helped it sustain its market competitiveness and agility, strengthen its domestic supply chain capabilities, and refine its manufacturing and order fulfillment procedures.

Schneider Electric has a significant presence in the United States for 135 years now. The enterprise has over 19,000 employees in the U.S., and its offerings are available in 150 countries worldwide.

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