Schneider Boosts Supply Chain Sustainability with Investment
Schneider Electric is setting out to substantially reinforce its supply chain in North America, pledging an investment worth more than US$700m by 2027.
This strategic financial commitment is aimed at enhancing energy infrastructure, scaling up domestic manufacturing and catering to the growing demands for AI technologies.
The increasing regional needs of data centres, utilities and industrial sectors are behind Schneider Electric's largest single capital investment in its 135-year history in the US.
This initiative builds upon earlier investments made in 2023 and 2024, culminating in a total commitment of over US$1bn this decade.
This extensive funding will be channelled towards enhancing factory operations and creating new jobs, in response to escalating consumer demand for energy-efficient solutions, industrial automation and grid reliability.
"This investment supports growing demand for digitalisation, automation and manufacturing, and includes upgrades, expansions and new facilities across the US," explains Agustin Lopez Diaz, North America Supply Chain Officer at Schneider Electric.
Agustin said manufacturing in the US had entered an "exciting moment" and that Schneider was demonstrating a "deep commitment to continuing to bolster our supply chain in North America".
Expanding operations and creating jobs
Schneider Electric's investment is anticipated to generate more than 1,000 jobs across its facilities.
The company is focusing on strengthening its workforce, specifically targeting veterans and retiring US service members for recruitment in diverse roles that include manufacturing, engineering, development and technical analysis.
Aamir Paul, President of North America Operations at Schneider Electric, lifts the lid on the organisation's bold capital commitment: "We stand at an inflection point for the technology and industrial sectors in the US, 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.
"This announcement is another milestone in our responsible investment strategy at Schneider Electric, underscoring our steadfast commitment to US manufacturing, our unwavering belief that jobs and technological innovation will thrive together and making a critical impact for our customers across the growing energy and automation sectors in the US."
Industry leaders have responded positively to Schneider's investment.
Jay Timmons, President and CEO of the National Association of Manufacturers (NAM), called it a "clear sign that manufacturing in America is moving forward—driving economic growth, innovation and job creation across the country."
He added: "By expanding their operations with a focus on energy security, automation and AI, Schneider Electric is not only strengthening America's competitiveness but also creating new opportunities and powering our nation's future."
Facility expansions across the US
Schneider Electric is also focusing on modernising and enlarging various manufacturing sites to meet the escalating energy demands, notably from data centres and AI applications.
Key facility investments include:
- Mt. Juliet, Tennessee – A new plant adjacent to the company’s existing site to strengthen its position in the medium voltage market and introduce new products.
- Andover, Massachusetts – A new power distribution unit laboratory to test power systems for AI data centres, along with a microgrid laboratory for real-world simulations.
- Columbia, Missouri – Additional space to increase production of circuit breakers.
- Fairfield, Ohio – Modernisation of an existing facility with advanced manufacturing technologies and software for new product development.
- El Paso, Texas – Expansion of the current campus to increase production of switchgear and power distribution equipment.
- Houston, Texas – Opening of an Innovation Centre in the US energy corridor, providing AI-driven automation solutions and end-to-end asset visibility.
- Raleigh, North Carolina – A new Robotics & Motion Centre of Excellence to develop AI-enhanced robotics and motion control products for industrial use.
- Welcome, North Carolina – Upgrades to support the production of switchgear and power distribution products for critical infrastructure.
Strengthening the grid and digital innovation
Moreover, Schneider Electric is directing investments towards modernising the grid through its One Digital Grid Platform, an AI-powered software solution designed for optimising grid performance.
Furthermore, the company has joined the DCFlex initiative led by EPRI, a research endeavour aiming to amalgamate data centres with the electrical grid to boost asset efficiency.
These strategic moves were announced during Schneider Electric’s participation in the DISTRIBUTECH 2025 conference in Dallas, highlighting the company's dedication to nurturing US energy resilience and automation.
Schneider’s technologies are widely integrated across various sectors, reflecting its vital role in supporting infrastructure and technological advancements.
Debra Phillips, President and CEO of the National Electrical Manufacturers Association (NEMA), emphasises the importance of the investment: "America’s electrical system will face unprecedented rising energy demand in the coming decade driven by data centres and AI.
"Schneider Electric's historic investment of more than US$700m across its domestic operations over the next two years is indicative of the critical role electrical manufacturers play in meeting this new demand and powering an electric future."
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