Schneider Electric to Invest $700M in U.S. to Power AI Boom

Schneider Electric, a global leader in energy management and automation, has announced a significant investment of over $700 million in its U.S. operations through 2027. This investment is the largest single capital expenditure commitment by the company in its 135+ year history in the U.S. and is aimed at bolstering the nation's energy infrastructure to support the growing demand for AI technologies, boost domestic manufacturing, and strengthen energy security.

The investment comes at a critical juncture for the technology and industrial sectors in the U.S., driven by unprecedented AI growth and energy demand. Schneider Electric's investment is expected to create over 1,000 new jobs, with a focus on hiring veterans and retiring U.S. service members. Newly created roles will include next-generation manufacturing professionals, engineers, developers, and technical analysts, all of whom will be instrumental in driving the company's technological innovation and meeting the growing demand for energy-efficient and automated solutions.



The investment will span several states, including Texas, Massachusetts, Tennessee, and Missouri. In Texas, the company will expand its campus in El Paso to increase production of switchgear and power distribution products, and open an innovation center in Houston to provide AI-driven automation solutions. In Massachusetts, a new power distribution unit laboratory will be opened in Andover to test power systems for the AI data center market, as well as a new microgrid laboratory to simulate and test fully functioning microgrids under real-world conditions. In Tennessee, a new facility will be constructed in Mt. Juliet to grow the company's presence in the medium voltage market and introduce new products to the U.S. market. In Missouri, the current plant in Columbia will be expanded to increase the production of molded case circuit breakers and air circuit breakers.

The investment is expected to have a significant impact on local and national economic growth. The influx of jobs will not only provide employment opportunities but also stimulate local economies through increased consumer spending and tax revenues. The company's commitment to U.S. manufacturing, energy security, automation, and AI aligns with the country's focus on bolstering the nation's energy infrastructure to power AI growth, boost domestic manufacturing, and strengthen energy security.

Schneider Electric's investment is also expected to have a positive impact on the company's bottom line. The company's year-end 2024 sales backlog of 21.4 billion euros, or about $22.39 billion, was its highest ever, and the company plans to invest about 2 billion euros through 2027 to expand production capacity. Much of the planned capacity expansion will occur in North America, despite uncertainty around U.S. trade policy that could necessitate "commercial actions" to protect the company's profitability.

The investment is also expected to have a positive impact on the company's customers. Schneider Electric's investment in the U.S. is aimed at helping the company maintain its leadership position in enabling smart factory transformations, develop and deploy cutting-edge energy efficiency solutions, and bolster its domestic supply chain capabilities. The company's investment in the U.S. is also expected to help it meet the growing demand for energy-efficient and automated solutions, which are critical for the AI boom.

In summary, Schneider Electric's $700 million investment in the U.S. is a strategic move that aligns with the current and projected growth trends in the AI and energy sectors. The company's investment in the U.S. is expected to have a significant impact on local and national economic growth, as well as the company's bottom line and its customers. The investment is a testament to Schneider Electric's commitment to U.S. manufacturing, energy security, automation, and AI, and its unwavering belief that jobs and technological innovation will thrive together.