At its Capital Markets Day meeting with investors, Schneider Electric announced a $3 billion multi-year agreement with Compass Datacenters. The agreement extends the companies' existing relationship, integrating their respective supply chains to manufacture and deliver prefabricated modular data center solutions.
A key driver of the expanded pact is the growing AI market, which is driving the generation and consumption of data. This trend requires a new breed of data centers that can be standardized in their design, manufactured efficiently, and delivered more quickly at a lower cost.
The two companies are hoping to build on the success that has come from the initial agreement.
Since the inception of the initial agreement between the companies, Schneider Electric has manufactured and delivered about 150 modular data center solutions to Compass from its West Chester, OH, operation. As demand for more data center solutions increases, the 110,000-square-foot Red Oak, TX operation—which the companies jointly announced in the summer—will also support projected growth.
"We are extremely grateful for the unwavering support and unparalleled expertise that Schneider Electric has already provided in supplying us with pre-fabricated data center power rooms," said Chris Crosby, CEO of Compass Datacenters. "Our collaborative efforts will allow us to meet the increasing demands from our customers to deliver cutting-edge data center solutions innovatively."
Aamir Paul, President of Schneider Electric North America, said the new agreement will enable it to continue to provide the infrastructure that Compass Datacenters needs as it scales its business. "The extension of our agreement to continue innovating will address future demands to serve customers in industries ranging from cloud and service providers to semiconductors and EVs, healthcare and telecommunication, among others," he said.
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