Schneider Electric and Switch's $1.9 Billion Agreement to Power AI Data Centers
Schneider Electric and Switch Expand Their Partnership
In a groundbreaking announcement made at Schneider Electric's Innovation Summit North America, held in Las Vegas on November 19, 2025, two industry leaders — Schneider Electric and Switch — revealed a monumental agreement valued at $1.9 billion. This partnership marks a pivotal moment in the evolution of data centers tailored for artificial intelligence (AI), particularly those characterized as hyperscale computing facilities.
The partnership will roll out in two significant phases and includes the introduction of prefabricated power modules along with the installation of Uniflair™ chillers, marking the first use of this technology in North America for Schneider Electric.
Transforming Data Center Infrastructure
As the demand for AI and hyperscale computing continues to surge, this collaboration aims to fulfill the evolving needs of AI factories. Current estimates project that by 2030, AI workloads will constitute over 35% of global data center activities, resulting in a staggering 160% increase in power demand. By integrating advanced cooling and power technologies into Switch's infrastructure, both companies are poised to create more resilient and scalable systems that meet future demands.
The newly established Supply Capacity Agreement (SCA) is designed to maintain service flexibility while ensuring that sufficient power and cooling are readily available to fit rapidly changing AI workloads. Schneider Electric's Uniflair chillers are engineered to optimize energy efficiency through non-Oil based, variable-speed centrifugal compressors that adjust to real-time IT loads. This innovative cooling strategy not only minimizes unnecessary overcooling but also cuts down on overall energy consumption by increasing operational efficiency.
Additionally, the prefabricated power modules are set to optimize airflow and thermal management, further enhancing the cooling process and increasing management efficiency compared to traditional cooling setups.
Leading the Future of AI Technologies
Vandana Singh, SVP of Secure Power in North America at Schneider Electric, stated, “As AI transforms the world around us, we have the opportunity not just to address current demands but also to redefine the potential of future data centers.” By merging modular power systems with advanced cooling technologies, Schneider Electric aims to facilitate infrastructure that anticipates the complexities and demands of future AI workloads, all while championing energy efficiency and sustainability.
Furthermore, this latest collaboration with Switch marks Schneider Electric's largest cooling services engagement ever. The agreement includes a resilience-focused, three-year full-service contract for chiller systems aimed at providing long-term support to Switch's diverse clientele, ensuring reliability and uptime.
Switch's Role in the AI Landscape
Switch operates five expansive U.S. data center campuses located in strategic locations such as Las Vegas, Tahoe Reno, Atlanta, Grand Rapids, and Austin. These facilities are set on vast expanses of land and equipped with multi-gigawatt power capacities, tailored to meet demanding AI processing needs. Switch's AI factories are engineered to facilitate extremely high density, providing up to 2 MW per rack, making them well-positioned to meet the evolving needs of AI technologies in line with NVIDIA's plans.
Jason Hoffman, Chief Strategy Officer at Switch, emphasized the company's mission to empower the next phase of AI development. He stated, “Our continued partnership with Schneider Electric propels us forward in creating new classes of AI infrastructure that are designed with operational insight and efficiency at their core.”
A Vision for Sustainable and Adaptive Energy Solutions
As both companies invest in this ambitious endeavor, the overarching goal remains clear: to establish a smarter, more robust, and interconnected energy ecosystem that is both sustainable and ready for future technological advancements. Together, Schneider Electric and Switch are setting a precedent for how energy-efficient and adaptable infrastructure can be developed to serve the insatiable needs of modern computing.
In conclusion, this $1.9 billion agreement not only embodies a significant step forward in the realm of AI infrastructure but also represents the values of innovation, efficiency, and sustainability that both Schneider Electric and Switch strive to uphold as leaders in their respective fields.