Schneider Electric to buy data centre cooling firm Motivair for $850 million


The logo of Schneider Electric is pictured at the Global Industrie exhibition in Villepinte near Paris, France, March 26, 2024. REUTERS/Benoit Tessier/File Photo

(Reuters) - Schneider Electric will pay about $850 million for a controlling stake in Motivair Corp, a specialist in liquid cooling for high-performance computing, the French firm said on Thursday, beefing up offerings for rapidly-growing data centres. The all-cash deal, expected to close in the coming quarters, will give Schneider a stake of 75% in U.S.-based Motivair, with plans to buy the rest by 2028. The deal strengthens Schneider's offering of direct-to-chip liquid cooling and high-capacity thermal systems, the company said in a statement.

The boom in use of generative-AI and large language models such as Chat-GPT calls for more efficient cooling solutions in data centres, particularly liquid cooling as traditional air cooling cannot disperse the greater heat, the company added.

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