Schneider Electric Commits US$700m to Meet Growing AI Demand
Schneider Electric is investing more than US$700m to grow its US operations through to 2027.
The move is aimed at reinforcing its supply chain across North America in the face of growing demand for AI technologies, energy infrastructure and domestic manufacturing.
This investment marks the largest single capital outlay in the company’s 135-year history in the United States, bringing its total US commitment since 2020 to over US$1bn.
The company, which provides energy management and automation solutions, is responding to what it sees as rising demand for digital technologies including AI, energy-efficient systems and infrastructure upgrades from sectors such as utilities, manufacturing and data centres.
Agustin Lopez Diaz, North America Supply Chain Officer, explains: "This investment supports growing demand for digitalisation, automation and manufacturing, and includes upgrades, expansions and new facilities across the US."
Creating jobs and strengthening supply chains
Schneider Electric expects its new investment to create more than 1,000 jobs across a range of roles in manufacturing, engineering, development and technical analysis.
The company is also recruiting US military veterans and retiring service members to join its expanding workforce.
Agustin describes manufacturing in the US as entering an "exciting moment" and says the company is showing a "deep commitment to continuing to bolster our supply chain in North America".
This announcement builds on Schneider Electric’s broader strategy to respond to AI-related energy demand and increased pressure on the grid.
Aamir Paul, President of North America Operations, puts it plainly: "We stand at an inflection point for the technology and industrial sectors in the US, driven by incredible AI growth and unprecedented energy demand. To lead the transformation ahead, we must be agile and act now to advance ambitious digitalisation and efficiency goals to make an impact for generations to come."
He adds: "This announcement is another milestone in our responsible investment strategy at Schneider Electric, underscoring our steadfast commitment to US manufacturing, our unwavering belief that jobs and technological innovation will thrive together and making a critical impact for our customers across the growing energy and automation sectors in the US."
Facilities across the US see upgrades and expansion
To meet growing demand, Schneider Electric is expanding several of its manufacturing and R&D sites. Among the locations receiving investment:
- Mt. Juliet, Tennessee: A new facility next to the current site, aimed at strengthening the company’s position in the medium voltage market and enabling new product lines.
- Andover, Massachusetts: New laboratory capabilities for testing power systems designed for AI-driven data centres, and a separate microgrid simulation space.
- Columbia, Missouri: Additional capacity for producing circuit breakers.
- Fairfield, Ohio: Facility modernisation with software tools and advanced manufacturing equipment to support new product development.
- El Paso, Texas: Expansion of the existing site to increase production of switchgear and distribution equipment.
- Houston, Texas: New Innovation Centre in the city’s energy corridor focused on AI-based automation and real-time asset visibility.
- Raleigh, North Carolina: Launch of a Robotics & Motion Centre of Excellence to develop robotics and motion-control systems supported by AI.
- Welcome, North Carolina: Upgrades to support manufacturing of switchgear and power distribution equipment for infrastructure networks.
These improvements target the growing load demands of data centres and industries adopting AI at scale, reinforcing Schneider Electric’s role in shaping the energy infrastructure of the future.
Grid digitalisation and utility innovation
Alongside its manufacturing push, Schneider Electric is investing in modernising the power grid through its One Digital Grid Platform.
This AI-based system helps utility providers monitor and optimise grid performance in real time.
The company is also contributing to the DCFlex initiative, a research programme led by the Electric Power Research Institute (EPRI), which focuses on how data centres interact with the grid. The goal is to reduce inefficiencies and make better use of energy assets.
All these developments were announced during the DISTRIBUTECH 2025 conference in Dallas, a key industry event focused on electric power and grid modernisation.
North America continues to be Schneider Electric’s largest market, accounting for 36% of its global revenue in 2024. The company operates more than 20 smart factories and distribution centres in the US, with a workforce of over 21,000.
Its technologies can be found in four in 10 American homes, 40% of global hospitals and at 40,000 water and wastewater sites in 150 countries.
Industry leaders are backing the move. Jay Timmons, President and CEO of the National Association of Manufacturers, says: "By expanding their operations with a focus on energy security, automation and AI, Schneider Electric is not only strengthening America's competitiveness but also creating new opportunities and powering our nation's future."
Debra Phillips, President and CEO of the National Electrical Manufacturers Association, also underlines the scale of the commitment: "Schneider Electric's historic investment of more than US$700m across its domestic operations over the next two years is indicative of the critical role electrical manufacturers play in meeting this new demand and powering an electric future."
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