Schneider Electric Bolsters Data Centre Credentials With Motivair Acquisition

French industrial group Schneider Electric has strengthened its data centre portfolio by acquiring an American firm that specialises in liquid cooling systems and thermal management solutions for high performance computing (HPC) systems.

Schneider Electric is perhaps best known for its range of Uninterruptible Power Supplies (UPS) solutions for the data centre sector, but announced it has now acquired a controlling stake in Buffalo, New York-based Motivair Corporation.

Under the terms of the transaction, Schneider Electric will acquire an initial 75 percent controlling interest in the equity of Motivair for $850 million in cash. Schneider expects to acquire the remaining 25 percent of Motivair in 2028.

Motivair acquisition

Schneider Electric cited the advent of Generative-AI and the introduction of Large Language Models (LLMs), which have acted as catalysts for enhanced power needs of data centres, which require more efficient cooling solutions, particularly liquid cooling, as traditional air cooling alone cannot mitigate the higher heat generated as a result.

As the compute within data centres becomes higher-density, the need for effective cooling will grow, with multiple market and analyst forecasts predicting growth in liquid cooling solutions in excess of +30%1 CAGR in the coming years, the industrial giant stated.

It added that this deal will strengthen it’s portfolio of direct-to-chip liquid cooling and high-capacity thermal solutions.

Motivair was founded in 1988 and currently has over 150 employees. There is no word at the time of writing of any job losses as a result of the transaction.

Motivair caters to the data centre sector by offering Coolant Distribution Units (CDUs), Rear Door Heat Exchangers (RDHx), Cold Plates and Heat Dissipation Units (HDUs), alongside Chillers for thermal management.

Data centre sector

“The acquisition of Motivair represents an important step, furthering our world leading position across the Data Center value chain,” said Peter Herweck, CEO of Schneider Electric. “The unique liquid cooling portfolio of Motivair complements our value proposition in Data Centre cooling and further strengthens our prominent position in Data Center build out from Grid to Chip and from Chip to Chiller.”

The data centre and networks market accounted for 21 percent of Schneider’s 2023 orders, or about 8 billion euros ($8.7 billion) worth of sales.

“Schneider Electric shares our core values and commitment to innovation, sustainability and excellence,” added Rich Whitmore, President & CEO of Motivair Corporation, who will continue to run the Motivair business out of Buffalo, NY after the closing of the transaction.

“Joining forces with Schneider will enable us to further scale our operations and invest in new technologies that will drive our mission forward and solidify our position as an industry leader,” said Whitmore. “We are thrilled to embark on this exciting journey together.”