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Schneider Electric and Compass Datacenters expand partnership with $3 billion multi-year data center technology agreement

Schneider Electric and Compass Datacenters expand partnership with $3 billion multi-year data center technology agreement

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The agreement between the companies is an expansion of an existing partnership to manufacture prefabricated modular data center solutions. Integration of supply chains between companies will deliver finished goods more quickly, with predictability, and at a lower cost.

At its Capital Markets Day meeting with investors, Schneider Electric confirmed a $3 billion multi-year agreement with Compass Datcenters – one of Inc. Magazine’s 5000 fastest growing companies.

The agreement extends the companies’ existing relationship that integrates their respective supply chains to manufacture and deliver prefabricated modular data center solutions.

The skyrocketing generation and consumption of data, in large part due to the burgeoning AI market, requires a new breed of data centers that can be standardized in their design, manufactured efficiently, and delivered more quickly at a lower cost.

Since the inception of the initial agreement between the companies, Schneider Electric has manufactured and delivered about 150 modular data center solutions to Dallas-based Compass from its West Chester, OH operation.

As demand for more data center solutions increase, the 110,000 square-foot Red Oak, TX operation – which the companies jointly announced in the summer – will also be used to support projected growth.

“We are extremely grateful for the unwavering support and unparalleled expertise that Schneider Electric has already provided in supplying us with prefabricated data center power rooms,” said Chris Crosby, CEO, Compass Datacenters.

“Our collaborative efforts will allow us to meet the increasing demands from our customers to deliver cutting-edge data center solutions in an innovative manner.”

Aamir Paul, President, Schneider Electric North America, said: “We are proud that Compass chose Schneider Electric as their data center partner because we can provide the infrastructure they require in a predictable and reliable manner.

“The extension of our agreement to continue innovating will address future demands to serve customers in industries ranging from cloud and service providers to semiconductors and EV’s, healthcare and telecommunication, among others.”

Through this unique 5-year vendor-supplier agreement, Schneider Electric and Compass Datacenters pitch the promise of scalable, modular data centers that offer a simplified design, streamlined manufacturing and the ability to be deployed easily across many environments.

In July 2023, Schneider and Compass announced they were partnering to build a state-of-the-art integration facility to support the increasing demand for prefabricated modular data centers.

The 110,000 sq foot facility, adjacent to Compass’ Red Oak, Texas campus, will create over 100 jobs and enable both organizations to integrate their supply

chain networks in response to data center business growth and customer demands.

Then, what was pitched as a ‘first-of-its-kind’ industry collaboration was said to reflect the changing dynamics of data center supply chains and the competitive need for more tightly integrated vendor/supplier partnerships.

This cutting-edge integration facility is intended to assemble and deliver power centers for Compass facilities – enhancing supply chain reliability, speed to market and delivery schedule integrity.

The facility is designed to integrate modular data center solutions and build pre-engineered, prefabricated IT infrastructure that will be delivered to Schneider’s customers across the US.

Accelerating production with an optimized supply network, Schneider is able to streamline the process, eliminate the upfront engineering and design work, and deliver quality finished solutions

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