Global leader in energy management and automation, Schneider Electric (SCHN.PA), has acquired a 75% stake in Motivair Corporation, a U.S.-based specialist in liquid cooling solutions for high-performance computing (HPC) systems, for $850 million. The remaining 25% is set to be purchased by 2028. This move is significant for the IC and semiconductor industries as liquid cooling technologies play a crucial role in the thermal management of advanced IC systems powering today's AI and high-performance computing workloads.

Motivair’s cutting-edge direct-to-chip cooling technology is designed to handle the increasing heat generated by modern semiconductors used in AI, HPC, and data centers. As semiconductors become more powerful, especially with the rise of generative AI and large language models like ChatGPT, traditional air cooling systems are struggling to keep up. Liquid cooling is emerging as a vital solution to maintain the performance and longevity of high-powered ICs, particularly in data centers.

Schneider Electric, which generated about 8 billion euros in sales from its data center and networks market in 2023, recognizes the growing need for advanced cooling solutions. With U.S. data center power consumption projected to triple by 2030, according to Goldman Sachs, the demand for energy-efficient and sustainable infrastructure will continue to rise, creating new opportunities for IC manufacturers to collaborate on integrated cooling solutions.

“This acquisition strengthens our position in the semiconductor value chain by adding advanced cooling technology to support accelerated computing needs driven by AI and HPC,” said Peter Herweck, CEO of Schneider Electric. “Motivair’s unique liquid cooling solutions complement our portfolio and enhance our ability to meet the evolving demands of high-performance semiconductor systems.”

Motivair, headquartered in Buffalo, New York, brings decades of expertise in liquid cooling for supercomputers, making it a valuable partner for addressing the thermal challenges faced by cutting-edge IC technologies. The partnership with Schneider Electric will allow Motivair to scale operations and invest in new technologies that support the continued growth of high-performance semiconductors.

As the use of advanced semiconductors in AI and HPC continues to expand, liquid cooling solutions are expected to see a compound annual growth rate of over 30%. By integrating Motivair's technology, Schneider Electric positions itself as a key player in ensuring the reliability and efficiency of next-generation IC systems.