To meed the booming AI demand and focus on American localisation, Schneider Electric is investing $700M across eight US states to expand data centres and energy infrastructure, aimed to create 1000+ jobs.
French electrification and automation expert Schneider Electric has announced a $700 million investment in its US operations by 2027, aiming to expand and upgrade facilities across eight states.
According to Manufacturing Drive, this investment is set to create over 1000 jobs, marking the company’s largest-ever commitment in the US. The upgrades will take place in Texas, Tennessee, Ohio, North Carolina, Massachusetts, and Missouri, to meet the rising demand for data centres and energy infrastructure.
The company’s investment is part of a broader $1 billion initiative in the US this decade. This surge in spending comes as demand for data centres and electrical infrastructure rises, driven by the increasing adoption of artificial intelligence (AI).
Meanwhile, a recent study from the Electric Power Research Institute predicts that electricity consumption by data centres could double by 2030, accounting for up to 9% of the country’s total power generation.
Schneider Electric’s North America president, Aamir Paul, also highlighted the significant growth in AI and energy demand driving these investments.
The company is also focusing on localisation, aiming to produce 90% of its sales in each region, which could help mitigate the impact of tariffs, particularly on production in Mexico.
The $700 million investment will be allocated across several sites, including a new facility in Mt. Juliet, Tennessee, to support the medium voltage market. In Andover, Massachusetts, funding will enhance the company’s data centre and microgrid research laboratory.
In Columbia, Missouri, Schneider will expand production to increase capacity for circuit breakers. The facility in Fairfield, Ohio, will undergo renovations to integrate advanced technology and new products. In El Paso, Texas, the plant will be expanded to boost switchgear and power distribution production.
Additionally, a new AI-driven innovation centre will be established in Houston, while Raleigh, North Carolina, will see the opening of a robotics centre. Finally, in Welcome, North Carolina, existing facilities will be updated to enhance switchgear and power distribution production.
The announcement follows Schneider’s strong 2024 performance, with revenue exceeding forecasts, especially driven by North American energy management growth.