Schneider Electric Expands Leadership in Data Center Cooling with Acquisition of Motivair Corporation

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Image Courtesy: Schneider Electric

Schneider Electric, a global leader in energy management and automation, has announced its agreement to acquire a controlling stake in Motivair Corporation, a leading provider of liquid cooling and advanced thermal management solutions for high-performance computing systems.

The increasing power demands driven by technologies like Generative AI and Large Language Models (LLMs) have underscored the need for more efficient data center cooling solutions. Traditional air cooling is proving inadequate as data centers become more densely packed with high-performance equipment, creating a growing market for liquid cooling systems. Analysts expect the demand for these solutions to grow at a compound annual growth rate (CAGR) of over 30% in the coming years.

This acquisition strengthens Schneider Electric’s portfolio, adding Motivair’s expertise in direct-to-chip liquid cooling and high-capacity thermal management. Headquartered in Buffalo, NY, Motivair was founded in 1988 and employs over 150 people.

It offers a range of thermal management products, including Coolant Distribution Units, Rear Door Heat Exchangers, Cold Plates, and Heat Dissipation Units. With a track record of double-digit growth, Motivair is poised to expand its offerings to meet the needs of the largest data centers and AI customers.

Peter Herweck, CEO of Schneider Electric, said, “The acquisition of Motivair reinforces our leading position in data center cooling solutions. Motivair’s unique liquid cooling technology will enhance our value proposition, supporting the growth of data center infrastructure from the grid to the chip.”

Rich Whitmore, President & CEO of Motivair, commented, “Partnering with Schneider Electric allows us to scale our operations and invest in new technologies, further solidifying our role as an industry leader.” Schneider Electric will acquire 75% of Motivair for $850 million, with plans to purchase the remaining shares by 2028. The deal, pending regulatory approvals, is expected to close in the coming quarters. Following the acquisition, Motivair will be integrated into Schneider’s Energy Management division.

Schneider Electric’s sales in the data center market, which represented 21% of the company’s 2023 orders, have grown consistently at double-digit rates since 2017. The company provides solutions to the world’s top cloud and service providers, with a strong focus on sustainability and efficiency.