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Schneider Electric to spend $700m on US expansion

A Schneider Electric office building in Houston, Texas (Brett Hondow/Dreamstime)
French automation and energy company Schneider Electric says it will spend $700m in the US over the next two years developing its manufacturing capacity, digitalisation and energy infrastructure for artificial intelligence (AI).

Revealed ahead of the Trump administration’s global tariffs announcement, Schneider said it was the single biggest US spending commitment in its 135-year history there.

The $700m comes on top of $440m spent strengthening the company’s US supply chain since 2020.

Schneider said the new plans would create around 1,000 new jobs.

Where’s the money going?

The company listed eight sites across the country for new facilities or expanded ones.

Expansions include a plant in Columbia, Missouri for circuit breakers and ones in Welcome, North Carolina and El Paso, Texas to make switchgear and power distribution products.

New facilities include a laboratory in Andover, Massachusetts for testing microgrids for the AI data centre market; one in Mt. Juliet, Tennessee for the medium voltage market; and a “Robotics & Motion Center of Excellence” in Raleigh, North Carolina, for high-performance motion and robotics products.

The company cites rising demand for data centres, utilities, manufacturing, and energy infrastructure for the spending.

‘Inflection point’

Aamir Paul, Schneider Electric’s president of North American operations, said: “We stand at an inflection point for the technology and industrial sectors in the U.S., 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.”

Debra Phillips, National Electrical Manufacturers Association president, said: “America’s electrical system will face unprecedented rising energy demand. (Schneider Electric’s financing) is indicative of the critical role electrical manufacturers play in meeting this new demand and powering an electric future.”

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