Schneider Electric and Compass Datacenters expand partnership with $3B agreement

Nov. 13, 2023
The new agreement expands a partnership to manufacture prefabricated modular data center solutions.

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.

For related articles, visit the Data Center Topic Center.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.

To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.

Sponsored Recommendations

ON TOPIC: Innovation in Optical Components

July 2, 2024
Lightwave’s latest on-topic eBook, sponsored by Anritsu, will address innovation in optical components. The eBook looks at various topics, including PCIe (Peripheral...

New Optical Wavelength Service Trends

July 1, 2024
Discover how optical wavelength services are reshaping the telecom landscape, driven by rapid expansion and adoption of high-speed connections exceeding 100 Gbps, championed by...

From 100G to 1.6T: Navigating Timing in the New Era of High-Speed Optical Networks

Feb. 19, 2024
Discover the dynamic landscape of hyperscale data centers as they embrace accelerated AI/ML growth, propelling a transition from 100G to 400G and even 800G optical connectivity...

The Pluggable Transceiver Revolution

May 30, 2024
Discover the revolution of pluggable transceivers in our upcoming webinar, where we delve into the advancements propelling 400G and 800G coherent optics. Learn how these innovations...