In the race to build AI data center capacity, technology matters, but the real differentiator is how quickly you can scale. The challenge isn’t just innovation; it’s keeping pace with accelerating AI demand. Data center operators and hyperscalers need scale, quality, and competitive pricing as they rush to add capacity.
AI pods are an effective way to scale fast. Pods consist of prefabricated infrastructure modules containing all the power and cooling distribution for high-density AI compute in the white space. Overall, modular data centers can reduce deployment time by up to 60%, and we are now applying this approach to the white space, going even faster. Prefabricated IT pods can reduce installation time from months to days, enabling data center operators and hyperscalers to quickly add capacity to meet demand.
Keeping up in the AI race
The hunger for AI has surprised everyone, sparking a “gold rush” to build new, high-density data centers that require significant power to run AI workloads. Globally, the data center industry is expected to grow at a 14% CAGR through 2030 and add 100 gigawatts of power capacity, according to JLL. This translates to $1.2 trillion in real estate asset value creation, JLL says.
Organizations in all sectors want to capitalize on AI. Software providers are among the largest drivers of AI demand as they integrate agentic AI capabilities into applications. For every company that alters its business model to integrate AI, the need for data center capacity grows.
Evolving with the AI market
As AI reshapes the data center industry, Schneider is adapting to meet the demand by adding factory capacity. We’ve boosted our factory square footage by 270% in the last two years. We opened a new location in Westchester, Ohio, and – with our partner Compass Datacenters – a new factory in Red Oak, Texas.
We’ll be adding more capacity in the near future. Overseas, Schneider is assembling prefabricated modular data centers in four locations. In total, we increased our factory footprint by 3.5 times to support the surging data center demand.
With over 1 million square feet in prefab factory footprint globally, we are just getting started. According to Omdia ¹ Schneider is the No. 1 manufacturer globally of prefabricated power, the No. 1 manufacturer of prefabricated modular data centers in North America and is among the top 6 providers globally outside North America¹, which means we are among only a few that can meet cloud and service provider demands as they strive to support AI growth.
We are also addressing our customers’ cooling demands. In 2025, we acquired Motivair, a manufacturer of direct-to-chip liquid cooling solutions that support high-density AI deployments.
Alongside expanded offerings and manufacturing capacity, we are also investing in people, with plans to double our prefab team to more than 2,000 employees directly supporting prefab customers. The investment in square footage and people supports our efforts to serve customers globally with consistency, performance, quality, and reliability, wherever modular data centers are deployed.
Multi-Year Agreements are redefining how data centers scale
AI is revolutionizing the data center industry in various ways. Demand isn’t just explosive; it has long legs. One-off contracts to add data center capacity are a thing of the past. Now, operators and hyperscalers are signing long-term agreements for prefabricated data center modules. A contract might call for delivering 10 modules a month for the next three years. This delivery model echoes the multiyear agreements commonly used by aircraft manufacturers requiring consistency, reliability, and massive scale.
Our list of customers with multi-year contracts for data center pods is growing, as is our list for Power Modules. In 2023 we expanded partnership with Compass Datacenters with a multi-billion dollar, multi-year agreement. In 2025, we entered an agreement with Switch Data Centers to supply prefabricated power modules. We also have a deal with colocation giant Digital Realty for prefab modules.
This approach benefits both Schneider Electric and our customers. It allows us to anticipate future demand, enabling us to set a clear path forward by right-sizing headcount and streamlining our supply chain. It also enables us to standardize production, benefiting customers by improving quality and lowering costs without sacrificing the flexibility to accommodate specific design requirements and improvements along the way.
Standardizing AI infrastructure for speed, scale, and predictability
AI growth is likely to remain steady in the next five to 10 years. During that period, data center operators and hyperscalers will need to continue scaling their operations. Schneider Electric intends to support our data center partners meet demand with our prefab modules, expertise, and global reach. Learn more about prefabricated AI pods and other modular data center solutions and how they can support your AI strategy.
¹ Source – Omdia, Prefab Modular Data Centers: Speed, Repeatability, and Risk Transfer, May 2026. Market share in prefabricated modular data centers and prefabricated power. Results are not an endorsement of Schneider Electric. Any reliance on these results is at the third party’s own risk.
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