Schneider Electric and Digital Realty Announce $373M Supply Capacity Agreement to Meet Rising Data Center Demand

Rhea-AI Summary

Digital Realty (NYSE: DLR) and Schneider Electric on Nov 19, 2025 signed a $373 million Supply Capacity Agreement (SCA) for Uninterruptible Power Supply (UPS), Low Voltage Switchgear (LVS), and pre-fabricated skids.

The SCA provides guaranteed capacity, a dedicated LVS production line, and economies of scale to accelerate delivery and improve supply chain resilience as AI-driven data center demand rises. The deal was announced at Schneider Electric's Innovation Summit in Las Vegas and builds on a longstanding partnership to scale critical infrastructure capacity in the U.S.

Positive

• $373 million binding Supply Capacity Agreement
• Guaranteed capacity for UPS, LVS, and pre-fabricated skids
• Dedicated LVS production line to speed delivery
• Economies of scale and improved supply chain resilience
• Addresses AI-driven surging data center demand

Negative

• None.

Insights

Supply Chain Strategist

Large guaranteed supply deal speeds capacity delivery and strengthens U.S. supply resilience for data centers.

Schneider Electric and Digital Realty signed a $373,000,000 Supply Capacity Agreement on Nov. 19, 2025 for UPS, Low Voltage Switchgear, and Pre-Fabricated Skids, moving to an SCA model with a dedicated LVS production line.

The business mechanism reduces lead-time variability by reserving manufacturing capacity and creating scale economics while keeping multi-vendor flexibility, as stated. Dependencies include timely production ramp of the dedicated LVS line and coordination across prefabrication workflows.

Watch the delivery schedule and integration of prefabricated skids into projects over the next 12–36 months to confirm faster capacity online and supply-chain resilience.

Infrastructure Capital Analyst

The agreement secures capital-backed equipment capacity to meet surging AI-driven data center demand.

The $373,000,000 SCA guarantees capacity for critical power and switchgear equipment and preserves a multi-vendor approach, which can protect project timelines and deployment budgets. The move extends collaboration into prefabrication and switchgear, broadening the scope beyond core power solutions.

Risks hinge on execution of the dedicated LVS production line and alignment of supply delivery with project build schedules. Monitor contract milestones, production capacity utilization, and announced deployment timelines during the next 1–3 years to assess realized operational and financial benefits.

• Agreement helps to bring capacity online faster to meet surging demand driven by AI
• Longstanding relationship continues to accelerate energy technology and critical infrastructure capacity in the U.S.

LAS VEGAS, Nov. 19, 2025 /PRNewswire/ -- Schneider Electric, a global energy technology leader, today announced that Digital Realty, (NYSE: DLR) the leading global provider of carrier-neutral data center, colocation, and interconnection solutions, has signed a $373 million Supply Capacity Agreement (SCA) for Uninterruptible Power Supply (UPS), Low Voltage Switchgear (LVS), and Pre-Fabricated Skids. The announcement was unveiled at Schneider Electric's Innovation Summit North America in Las Vegas, convening more than 2,500 business leaders and market innovators to accelerate practical solutions for a more resilient, affordable and intelligent energy future.

Building on years of close collaboration, Schneider Electric and Digital Realty have evolved their longstanding partnership to support rising capacity demands and deliver greater supply chain resilience. The strategic shift to an SCA model provides guaranteed capacity, economies of scale, and a dedicated LVS production line, while preserving the flexibility needed for a dynamic, multi-vendor environment to mitigate risk.

"As demand for digital infrastructure continues to accelerate, securing reliable capacity has become more critical than ever," said Jeff Tapley, Chief Operating Officer, Digital Realty. "This agreement with Schneider Electric strengthens our ability to scale with confidence, while maintaining the flexibility and resilience our customers expect. By deepening our collaboration, we're creating a more agile and future-ready supply chain to support the next phase of growth."

This collaboration marks a pivotal step in evolving Schneider Electric and Digital Realty's partnership to meet the growing demands of the digital economy. By extending collaboration beyond core power solutions into areas such as prefabrication and switchgear, the companies are laying the foundation for a more resilient, scalable, and future-ready supply model. This shift reflects Digital Realty's forward-looking approach to securing critical infrastructure capacity.

"The data center industry is at a turning point. AI workloads and reindustrialization are creating fast ramping demand that today's infrastructure cannot meet," said Vandana Singh, Senior Vice President, Secure Power Division, North America at Schneider Electric. "In partnership with Digital Realty, we are applying Schneider Electric's energy technology across power solutions, prefabrication, and switchgear to add capacity closer to where it is and build a more resilient supply chain."

About Schneider Electric

Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalizing industries, businesses, and homes. Its technologies enable buildings, data centers, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory. With 160,000 employees and one million partners in over 100 countries, Schneider Electric is consistently ranked among the world's most sustainable companies.

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SOURCE Schneider Electric

FAQ

What did Digital Realty (DLR) announce on November 19, 2025?

Digital Realty announced a $373 million Supply Capacity Agreement with Schneider Electric for UPS, LVS, and pre-fabricated skids.

How does the $373M SCA with Schneider Electric affect DLR's data center capacity?

The SCA provides guaranteed capacity and a dedicated LVS production line to accelerate capacity coming online.

What products are covered by the November 19, 2025 SCA between DLR and Schneider Electric?

The agreement covers Uninterruptible Power Supply (UPS), Low Voltage Switchgear (LVS), and pre-fabricated skids.

Why did Digital Realty (DLR) pursue a Supply Capacity Agreement with Schneider Electric?

To secure reliable capacity, gain economies of scale, and strengthen supply chain resilience amid rising AI-driven demand.

Where and when was the DLR–Schneider Electric $373M agreement announced?

It was unveiled on Nov 19, 2025 at Schneider Electric's Innovation Summit North America in Las Vegas.