Schneider Electric and Switch signed a two-phase supply capacity agreement valued at $1.9 billion, expanding their long-running partnership to support the rapid build-out of AI factories across Switch’s U.S. campuses. The deal covers prefabricated power modules and the first U.S. deployment of Schneider’s Uniflair chillers, marking the largest data center cooling project in North America and the company’s largest cooling services engagement to date. The announcement was made at Schneider Electric’s Innovation Summit North America in Las Vegas.
The agreement strengthens Switch’s position as a designer and operator of multi-gigawatt AI campuses engineered to support rack densities up to 2 MW, aligned with NVIDIA’s DGX and MGX system roadmaps. With AI workloads projected to exceed 35% of global compute demand by 2030, Switch will integrate Schneider’s high-efficiency cooling systems, including oil-free centrifugal compressors and free-cooling modes, along with standardized, pretested power modules that improve airflow and boost economizer hours.
Schneider and Switch framed the partnership as a path to scaling AI capacity without escalating energy use. The supply capacity agreement guarantees available cooling and power capacity while preserving design flexibility for rapidly changing AI architectures, supported by a three-year chiller service contract to ensure system reliability across Switch’s exascale campuses in Las Vegas, Tahoe Reno, Atlanta, Grand Rapids and Austin.
• $1.9 billion, two-phase supply capacity agreement covering prefabricated power modules and chillers
• First U.S. deployment of Schneider Electric’s Uniflair chillers
• Largest cooling services engagement in Schneider Electric’s history
• Supports Switch AI factory designs up to 2 MW per rack across five exascale campuses
• Agreement includes three-year full-service chiller support
• Cooling architecture incorporates variable-speed centrifugal compressors and integrated free cooling
“As AI continues to reshape the digital landscape, we see an opportunity not just to meet demand, but to define what the next generation of data centers can achieve,” said Vandana Singh, SVP of Secure Power North America at Schneider Electric.
🌐 Analysis
wThis agreement underscores the accelerating shift toward high-density, liquid-ready and hybrid-cooled AI campuses, where thermal architecture is now as strategic as compute hardware. Switch’s pursuit of 2 MW-per-rack designs reflects a broader move across hyperscalers and AI cloud providers to align with next-generation GPU roadmaps from NVIDIA and other vendors. For Schneider Electric, the deal reinforces its position in the fast-growing AI data center supply chain, especially as its competitors expand modular and liquid-cooling portfolios. The scale and guaranteed-capacity model are consistent with recent mega-factory announcements from cloud and AI infrastructure operators seeking long-term supply assurance amid unprecedented demand.
