Rising AI Workloads Accelerate Demand for Advanced Control Systems
Artificial intelligence continues to reshape global infrastructure, and the data center market is one of its fastest-growing segments. Schneider Electric recently signed nearly $2.3 billion in U.S. contracts, underscoring how industrial automation and modern control systems now anchor the future of high-density computing.
Moreover, leading operators are investing heavily in cooling, power distribution, and automation modules to handle rapidly increasing AI workloads.
Strategic Partnerships Strengthen Schneider’s Position in Factory and Data Center Automation
Schneider Electric confirmed two major agreements with U.S. data center operators. The first, valued at $1.9 billion, involves Switch and focuses on scalable power modules and high-efficiency cooling technology.
The second deal, worth $373 million, was finalized with Digital Realty and covers uninterruptible power supplies, switchgear, and supporting industrial automation hardware.
These phased deliveries, scheduled for 2025 and 2026, reflect a broader trend: data center operators now treat automation, PLCs, and modular control systems as essential infrastructure rather than optional enhancements.
Industrial Automation Solutions Become Essential for AI-Ready Infrastructure
AI-driven operations require stable, predictable, and energy-efficient environments. Schneider’s solutions—ranging from advanced cooling systems to integrated power distribution—help data centers maintain stable performance under extreme loads.
In addition, the company is collaborating with Nvidia to design thermal management solutions for its high-power AI chips. This partnership demonstrates how automation, DCS architectures, and precise control loops increasingly influence semiconductor deployment.
From my experience with automation hardware, data centers adopting PLC-driven monitoring and intelligent power modules gain stronger reliability and faster fault responses, which is essential in AI-heavy environments.
Hyperscalers Expand Investments as AI Spurs New Control System Requirements
Major cloud providers including Amazon, Google, Meta, and Microsoft are accelerating investments in data center construction. Industry reports forecast combined capital expenditure surpassing $360 billion in 2025.
As a result, demand for industrial automation, energy-efficient power systems, and digital control platforms continues to surge.
Therefore, vendors with mature control system portfolios—such as Schneider Electric, Siemens, ABB, and Emerson—are becoming critical partners in AI-oriented infrastructure expansion.
AI Growth Intensifies Pressure on U.S. Energy Grids
AI data centers require significantly more power than traditional server facilities. However, most existing grid systems were not designed for this new consumption pattern.
A recent Morgan Stanley analysis indicated that global data center power demand could nearly triple within three years.
Consequently, operators are turning to automated load-balancing systems, intelligent switchgear, and energy-optimized cooling modules to reduce the burden on regional power grids.
Schneider’s Largest North American Cooling Deal Highlights Energy-Efficiency Push
The multi-billion-dollar Switch partnership represents Schneider’s largest cooling services contract in North America. The company reports that its engineered solution can increase AI processing capacity without proportionally increasing power usage.
This reflects a key trend: modern data centers depend on advanced industrial automation to maintain efficiency, integrate renewable energy, and stabilize high-density workloads.
In my view, the industry’s shift toward integrated cooling-and-controls packages is inevitable. Operators no longer purchase cooling or power modules alone—they now want unified, software-driven automation ecosystems.
Conclusion: Industrial Automation Becomes the Backbone of the AI Era
Schneider Electric’s new U.S. deals highlight how essential automation technologies have become to the data center sector.
As AI adoption expands, operators must rely on intelligent control systems, advanced PLC integration, and scalable cooling and power platforms to maintain performance while managing energy costs.
Therefore, data center investment trends increasingly align with the broader momentum of industrial automation and factory-grade reliability.
Application Scenarios and Industry Use Cases
1. High-Density AI Data Centers
PLC-based monitoring systems optimize cooling and power distribution in GPU clusters, reducing downtime and improving thermal stability.
2. Energy-Constrained Facilities
Industrial automation enables dynamic load shedding, helping operators run more AI workloads without overloading regional power grids.
3. Modular and Edge Data Centers
DCS-style architectures allow compact facilities to scale quickly while maintaining safe operating parameters.
4. Semiconductor and Electronics Manufacturing
AI chip production plants use similar cooling and control solutions, making Schneider’s technology transferable across industries.