Schneider Electric Acquires PTC for $22.6 B to Strengthen Data Center Infrastructure

systems

Part of a bigger play for smarter power infra

Schneider Electric’s market capitalization has more than doubled over the past four years, driven by the AI boom that has created unprecedented demand for data‑center power and cooling solutions.

The company is now capitalizing on its strong performance to secure its position as a leading provider of industrial power and data‑center infrastructure through the $22.6 billion cash acquisition of U.S. industrial software firm PTC.

Founded in 1985, PTC built its reputation on computer‑aided design (CAD) software and lifecycle management tools for industrial products and applications.

The all‑cash transaction, announced on Monday, positions Schneider Electric to take advantage of the rapid expansion of data centers that train and serve AI models at scale.

Since ChatGPT ignited the AI arms race in late 2022, data‑center design and power requirements have evolved dramatically. Traditional 40 kW air‑cooled racks are being replaced by 250 kW liquid‑cooled systems that demand denser power delivery and integrated thermal‑management solutions, all of which must function cohesively.

To address the increasing complexity and supply‑chain pressures of data‑center deployments, Schneider has pursued several strategic acquisitions that have expanded its role in “bit barn” development.

In late 2024, shortly after Nvidia introduced its first fully liquid‑cooled rack designs, Schneider invested about $850 million for a 75 % stake in Motivair, a leading manufacturer of cold plates, rack manifolds, coolant distribution units (CDUs) and rear‑door heat exchangers that enable liquid‑cooled servers. Schneider plans to acquire the remaining 25 % of Motivair in 2028.

As Schneider’s involvement in data centers has grown, customers managing its equipment now face the challenge of overseeing a larger number of products throughout their lifecycles. The acquisition of PTC broadens Schneider’s lifecycle‑management capabilities and adds essential design functionalities to its portfolio.

The PTC deal is not Schneider’s only data‑center‑focused acquisition this year; in June the company purchased industrial data‑operations provider Cognite for $3.1 billion.

During Monday’s investor call, Schneider CEO Olivier Blum indicated that owning both PTC and Cognite would allow the company to embed software‑defined automation into power systems early in the development cycle, thereby improving overall efficiency. Data centers are among the primary targets for this initiative.

“At the design stage, we believe it is crucial to help customers design not only products and machines but also processes and energy systems. This is where CAD engineering becomes a critical component of our portfolio,” said Blum, according to a transcript of his remarks to investors.

Assuming no regulatory obstacles arise, the transaction—Schneider’s largest acquisition to date—is not expected to close until late next year. ®

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