Schneider Electric, a global leader in energy management and automation, has announced its acquisition of a controlling stake in Motivair Corporation, a specialist in liquid cooling solutions, for $850 million. This strategic move is set to bolster Schneider's offerings in the rapidly expanding data center market, driven by the increasing demands of high-performance computing and AI technologies.

The acquisition will see Schneider Electric take a 75% stake in the Buffalo-based Motivair, with plans to acquire the remaining shares by 2028. Motivair is renowned for its advanced thermal management solutions, including Coolant Distribution Units and Heat Dissipation Units, which are crucial for the efficient cooling of high-density computing systems.

The deal is expected to close in the coming quarters, subject to regulatory approvals, and will integrate Motivair into Schneider's Energy Management business. This acquisition aligns with Schneider's strategy to enhance its portfolio of direct-to-chip liquid cooling and high-capacity thermal systems, addressing the growing need for efficient cooling solutions in data centers.

The rise of generative AI and large language models has significantly increased the power requirements of data centers, necessitating more effective cooling technologies. Liquid cooling, in particular, is gaining traction as traditional air cooling methods struggle to manage the heat generated by these advanced computing systems.

Schneider Electric's CEO, Peter Herweck, emphasized the strategic importance of the acquisition, noting that it complements the company's existing offerings and strengthens its position in the data center value chain. The acquisition is expected to drive innovation in cooling technology and support Schneider's mission to provide sustainable and efficient energy management solutions.

Motivair, founded in 1988, has a strong track record in cooling some of the world's fastest supercomputers and is poised for continued growth as it expands its end-to-end liquid cooling solutions. The acquisition is a testament to Schneider Electric's commitment to innovation and sustainability, as it continues to lead in the digital transformation of energy management.