Schneider Electric & Foxconn team up on AI data centres

Schneider Electric and Hon Hai Technology Group have formed a strategic collaboration on AI data centres, focused on next-generation infrastructure for AI computing.

The companies will combine Foxconn's manufacturing and AI rack integration capabilities with Schneider Electric's power, cooling and energy management systems. Production is due to begin later this year.

The arrangement centres on co-developing reference architectures for AI data centres, pointing to a more standardised approach as operators face rising demand for computing capacity. The companies also plan to explore closed-loop energy optimisation, modular power and cooling skids, and common design frameworks.

The effort reflects a broader market shift as AI workloads place heavier demands on electricity supply, thermal management and deployment times. Data centre operators and technology suppliers are looking for ways to shorten build cycles while handling denser racks and more variable energy use.

Foxconn, best known as the contract manufacturer behind a wide range of electronics products, has been expanding its position in AI systems and cloud infrastructure. Schneider Electric has built a large presence in electrical equipment, software and services for industrial sites, buildings and data centres.

By bringing those capabilities together, the companies aim to offer integrated systems for customers building AI infrastructure in different regions. The announcement signals a push towards repeatable designs that can be manufactured and deployed at larger scale rather than assembled as one-off projects.

Infrastructure demand

Demand for AI computing has reshaped data centre planning over the past two years, particularly as advanced processors require more power and generate more heat than earlier generations of hardware. This has increased pressure on operators to secure equipment, energy supply and engineering expertise at the same time.

Foxconn said the pace of change in AI is forcing the sector to rethink how infrastructure is designed and delivered.

"At the pace AI is evolving, the industry requires a new model for how infrastructure is designed, built, and delivered," said Young Liu, Chairman, Foxconn.

He added: "By combining Foxconn's strength in AI systems and global manufacturing with Schneider Electric's deep expertise in power and energy, we are creating a path for customers to deploy AI capacity at scale-faster, smarter, and more sustainably."

Schneider Electric framed the deal around the growing importance of energy management in AI facilities, where electricity use has become a central constraint on expansion.

"AI demand continues to accelerate, and as compute scales to keep pace, the energy behind it becomes a fundamental enabler," said Olivier Blum, Chief Executive Officer, Schneider Electric.

He added: "If we want to scale AI responsibly, these systems must be connected. This is where energy intelligence becomes essential. At Schneider Electric, we are advancing energy tech to build the most efficient and sustainable AI factories by bringing integrated power, cooling, and digital capabilities into AI data centers. Working with Foxconn, we are helping customers build capacity with real speed, resilience, and efficiency, as energy technology partners to an industry that is firmly entering the era of intelligence."

Scale and reach

Foxconn brings significant manufacturing scale to the partnership. The group said it generated TWD 8.1 trillion in revenue in 2025, or about USD $260 billion, and operates more than 240 campuses across 24 countries. According to the company, its electronics manufacturing services market share exceeds 40%.

Schneider Electric said it has 160,000 employees and one million partners in more than 100 countries. Its products and services span buildings, factories, infrastructure, grids and data centres, giving it a broad installed base in sectors now seeing heavier AI-related investment.

The collaboration comes as suppliers across the industry seek to package data centre components into more standardised systems. Modular assemblies for power and cooling have drawn attention because they can reduce on-site engineering complexity and help operators replicate projects across multiple locations.

Reference architectures can also help customers compare options more quickly, particularly when the equipment mix for AI clusters changes rapidly. For companies rolling out capacity across several markets, standard designs may help ease supply chain bottlenecks and local construction constraints.

The goal is to create repeatable blueprints for AI data centres worldwide, with production beginning later this year.