Schneider Electric, the France-based energy management and automation firm, will invest more than $700 million to expand its manufacturing and infrastructure capacity across the United States through 2027. The initiative is a direct response to surging domestic energy demands fueled by rapid advancements in artificial intelligence and data center construction.
The company plans to upgrade or expand facilities in Kentucky, Nebraska, Texas, and North Carolina, among others. Schneider says the investment will support over 1,000 new jobs and bring additional production capacity for circuit breakers, switchboards, panelboards, and other energy management components critical to data centers and utilities.
In a statement, Schneider’s North America president Aamir Paul said the investment comes at “an inflection point for the technology and industrial sectors,” citing escalating energy needs linked to AI, cloud computing, and electrification trends in the U.S. industrial economy.
Manufacturing Shift Accelerated by AI, Tariffs, and Energy Policy
This new capital deployment adds to more than $440 million in investments that Schneider has already made in the U.S. since 2020. The company said domestic sourcing of equipment and components is now a strategic priority, as global supply chains remain vulnerable and demand for faster-to-market products grows.
U.S. policy shifts may also be playing a role. In recent months, Washington has imposed expanded tariffs on imports of steel, aluminum, semiconductors, and pharmaceutical ingredients, pushing multinational companies to reshore production or build new capacity in America. According to Reuters, Schneider is among a growing number of foreign-owned manufacturers seeking to strengthen their U.S. footprint in light of these changes.
The company has said the new and expanded factories will produce the electrical gear needed to power the data centers that drive America’s AI growth. These facilities—massive energy-intensive complexes—are being built at a record pace. According to real estate firm CBRE, the U.S. saw more than 2.3 gigawatts of new data center capacity added in 2023 alone, a number expected to grow this year (CBRE).
U.S. Cooling Infrastructure Bolstered by Recent Acquisition
Schneider’s expansion comes on the heels of its 2024 acquisition of Motivair, a New York-based data center cooling technology manufacturer. That $850 million deal gave Schneider a controlling stake in one of the few U.S. producers of high-performance cooling systems capable of supporting hyperscale AI infrastructure.
As utilities and cloud providers rush to meet the energy demands of AI, the U.S. is at risk of outstripping available grid capacity. Industry groups have warned that states such as Georgia and Virginia may face power shortages unless infrastructure is modernized. Schneider appears to be positioning itself to supply that modernization—and do so from U.S. soil.
While the company is headquartered abroad, this latest move illustrates how trade policy and technological shifts push manufacturers to double down on American production.
Image credit: Schneider Electric
