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Dive brief:
- from Schneider Electric financial report for the year 2025 painted a picture of a company riding the AI data center boom while maintaining exposure to other sectors benefiting from the broader “electrification” supercycle, including buildings and manufacturing.
- Across all segments, Schneider’s revenue grew 8.9% organically in 2025. North America was its strongest region, growing 15% year over year. during 2024. Its energy management business, which includes buildings and IT end-uses, saw organic revenue growth of 10% in 2025, far outpacing its industrial automation business.
- “We are making progress in energy [technology] to the next level with our unique electrification, automation and digital portfolio, driving energy and industrial intelligence across all our markets,” CEO Olivier Blum said in a statement. “We enter this cycle confident of sustained growth.”
Diving knowledge:
Schneider’s data center and networking verticals are the company’s main growth driver, with North America supplying much of the company’s demand for electrical, cooling and other infrastructure for high-performance IT facilities.
The vertical currently represents 30% of Schneider’s end-market exposure, measured as a percentage of orders in 2025. The company sees the data center and networking end-market growing by more than 10% over the next five years. Key drivers of the projected growth include a broad increase in IT demand, the shift to 800-volt DC electrical architectures in cutting-edge data centers and an increased focus on data center power and cooling efficiency, Schneider said.
By the numbers
11.2%
4Q 2025 year after year organic growth in its energy management business, which includes data centers.
>10%
projected annual market growth in the “data center and network” vertical to 2030.
4-5%
projected annual customer order growth to 2030 for its buildings business.
Data center orders accelerated toward the end of 2025 and will likely remain strong through 2026 as projects planned for the next 18 to 24 months take shape, Hilary Maxson, Schneider Electric’s chief financial officer, said on an earnings call early Thursday.
The data center orders helped offset weakness in other segments that Schneider serves, such as residential and distributed computing, he said.
Schneider serves data center customers throughout the lifecycle of the facility, according to the investor presentation the company shared Thursday. It leverages ETAP and NVIDIA Omniverse technologies during design and offers a wealth of products and services during the operation phase, including electrical components and high-performance cooling solutions enabled by its recent acquisition of a controlling stake in Motivair.
Schneider’s breadth positions it well for the shift to 800-volt DC architectures in newer data centers, Blum said on the call. He said the company is developing new solutions that will hit the market later in the decade. Separately, Schneider noted in its filing Thursday that it is building a new manufacturing facility in Tennessee that will produce “customized power distribution equipment.”
Schneider reported steady progress with customers outside the hot data center industry, including the building technology vertical that has long been a mainstay. The company sees 4% to 5% annual growth in building technology over the next five years, driven in part by its software-defined EcoStruxure solutions.
The customers’ efficiency and sustainability goals, and Schneider’s own, remain critical to the vertical’s performance, Schneider says. It describes its EcoStruxure Building Activate solution, for example, as an “AI-powered platform” that helps small and medium-sized buildings reduce energy use and carbon emissions while increasing operational efficiency and improving occupant comfort.
Relatedly, Schneider unveiled a new five-year “sustainability ambition” covering its own operations and those of its customers. It aims to save or electrify 1,500 terawatt-hours of customers’ energy consumption between 2026 and 2030, an amount roughly equal to a third of Total electricity consumption of the United States by 2025, and avoid 1.5 billion tonnes of customer CO2 emissions between 2018 and 2030.
