Schneider Electric, a global leader in energy management and digital transformation, has announced the acquisition of a controlling interest in Motivair Corporation, a leading global provider of advanced liquid cooling solutions. This move bolsters Schneider Electric’s position in the rapidly evolving data center market, particularly as the demand for high-performance computing continues to rise due to advancements in Generative AI and Large Language Models (LLMs).
The growing shift toward accelerated computing is driving data centers to adopt more efficient cooling solutions. Traditional air cooling methods are increasingly inadequate for mitigating the heat generated by high-density computing systems, leading to a growing need for liquid cooling technologies. According to industry forecasts, the demand for liquid cooling solutions is projected to grow at a compound annual growth rate (CAGR) of over 30% in the coming years. The acquisition of Motivair enables Schneider Electric to enhance its portfolio of direct-to-chip liquid cooling and advanced thermal management solutions, meeting the increasing thermal challenges faced by modern data centers.
Founded in 1988 and headquartered in Buffalo, NY, Motivair has more than 150 employees and offers a comprehensive range of cooling solutions, including Coolant Distribution Units (CDUs), Rear Door Heat Exchangers (RDHx), Cold Plates, Heat Dissipation Units (HDUs), and Chillers for thermal management. The company is renowned for its expertise in cooling the world’s fastest supercomputers with liquid cooling solutions and has experienced strong double-digit growth in recent quarters. With the shift toward liquid cooling in data centers and AI environments, this growth trajectory is expected to continue.
Peter Herweck, Chief Executive Officer of Schneider Electric, expressed his enthusiasm for the acquisition, stating, "The acquisition of Motivair represents an important step in furthering our world-leading position across the Data Center value chain. The unique liquid cooling portfolio of Motivair complements our value proposition and strengthens our position in Data Center cooling, from Grid to Chip and from Chip to Chiller."
Rich Whitmore, President & CEO of Motivair Corporation, will continue to lead the company from its headquarters in Buffalo following the acquisition. He remarked, "Schneider Electric shares our core values of innovation, sustainability, and excellence. By joining forces with Schneider, we are poised to scale our operations and invest in new technologies that will drive our mission forward and solidify our position as an industry leader."
Under the terms of the transaction, Schneider Electric will acquire a 75% controlling interest in Motivair for an all-cash consideration of $850 million. The deal is expected to close in the coming quarters, pending regulatory approvals, with the remaining 25% of non-controlling interests to be acquired in 2028. Upon completion, Motivair will be integrated into Schneider Electric’s Energy Management business unit.
Schneider Electric’s exposure to the Data Center & Networks market, which represented 21% of the company’s FY2023 orders, has been a major growth driver. Sales to the data center sector have grown at a double-digit CAGR since 2017, and this trend is expected to continue. The acquisition of Motivair further strengthens Schneider Electric’s offerings, enabling the company to meet the increasing cooling demands of the world’s leading cloud and service providers.
