Is DeepSeek the Game-Changer Data Centres Have Been Waiting For? Find Out Why One Kit Supplier Thinks Otherwise!

Ride the Wave: Uncover the Secrets of the Editor’s Digest

Embark on a journey to explore the latest insights handpicked by Roula Khalaf, Editor of the FT, in the weekly Editor’s Digest newsletter. Dive into the world of leaner artificial intelligence models and the impact they have on the demand for data centers. Discover how this new wave of technology is reshaping the landscape and influencing major players in the industry.

1. Schneider Electric’s Perspective:

• Despite the rise of China’s DeepSeek and its revolutionary AI models, Schneider Electric remains steadfast in its position.
• Surging demand for data center products and services has been a boon for Schneider, powering tech companies’ AI models and cloud technology needs.
• CEO Olivier Blum remains optimistic about the growth potential in the data center business, citing sustained demand and increased efficiency in technology adoption.
• Blum highlights the importance of Schneider and other manufacturers meeting the rising demand, positioning the company for future success in the industry.

1. Industry Impact:

• Other energy and electrical groups, like Siemens Energy, Constellation Energy, and ABB, faced challenges in the wake of DeepSeek’s advancements.
• The International Energy Agency’s cautionary warnings about AI power demands sparked a sell-off in the sector.
• However, Blum sees the silver lining, forecasting increased AI adoption and a higher demand for Schneider’s services as technology evolves.

1. Schneider’s Growth Trajectory:

• With operations spanning the globe and significant sales in North America, Schneider continues to expand its reach.
• The company’s strategic focus on data centers was evident in 2024, with a quarter of its orders linked to this segment.
• Strong financial performance, with revenue growth of 6% and operating income up by 10.5%, showcases Schneider’s resilience and agility in a dynamic market.
• Acquisitions, like the recent investment in liquid cooling company Motivair, demonstrate Schneider’s commitment to enhancing its services and offerings.
• Despite market fluctuations post-DeepSeek announcement, Schneider’s shares reflect investor confidence, rising 6% in morning trading.

As you ride the wave of innovation and transformation with Schneider Electric, witness firsthand the power of adapting and evolving in an ever-changing technological landscape. Embrace the opportunities that lie ahead and join the journey towards a future driven by efficiency, sustainability, and growth.