Schneider Electric and Nvidia Collaboration

Schneider Electric (EPA:SCHN) is partnering with Nvidia Corp (NASDAQ:NVDA) to develop cooling system designs tailored for new artificial intelligence (AI) data centers. Announced on Wednesday, these cooling systems will support Nvidia's advanced servers, which feature 72 of its latest AI chips, set for deployment early next year.

While the financial terms of the partnership are not disclosed, the collaboration's importance is reflected in the technical specifications shared.

The new servers are expected to consume up to 132 kilowatts of power per rack, requiring liquid cooling for optimal performance. Nvidia's transition to liquid cooling for most of its chips has sparked significant activity in data center construction and adaptation to accommodate this technology.

Aparna Prabhakar, Senior Vice President of Schneider's secure power division, emphasized the extensive engineering collaboration between the two companies, stating, "It is heavy lifting on both sides."

Schneider Electric is responsible for all external elements of the server infrastructure, whereas Nvidia handles internal components.

The cooling designs crafted by Schneider are flexible, allowing adjustments based on the number of Nvidia servers and their respective power demands. These designs are intended for sale to cloud service providers and data center operators.

This partnership bolsters Schneider Electric's strategy to enhance its AI data center offerings. In 2023, the company secured a major contract with Compass Datacenters, committing to supply $3 billion worth of electrical equipment over five years.

This deal followed Schneider Electric's leadership change last month with the appointment of a new CEO.

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