Dive Brief:

• Schneider Electric’s full-year 2025 financial report painted a picture of a company continuing to ride the AI data center boom while maintaining exposure to other sectors benefiting from the broader “electrification” supercycle, including buildings and manufacturing.
• Across all segments, Schneider’s revenues grew 8.9% organically in 2025. North America was its strongest region, growing 15% from the year prior over 2024. Its Energy Management business, which includes buildings and IT end uses, saw 10% organic revenue growth in 2025, far outpacing its Industrial Automation business.
• “We are advancing energy [technology] to the next level with our unique portfolio in electrification, automation and digital, driving energy and industrial intelligence in all our markets,” CEO Olivier Blum said in a statement. “We enter this cycle confident in sustained growth.”

Dive Insight:

Schneider’s data centers and networks vertical is the single biggest driver of companywide growth, with North America supplying much of the demand for the company’s electrical, cooling and other infrastructure for high-performance computing facilities.

The vertical currently accounts for 30% of Schneider’s end-market exposure, measured as a percentage of orders in 2025. The company sees the data center and networks end-market growing by more than 10% over the next five years. Key drivers of the projected growth include a broad-based increase in computing demand, the shift to 800-volt direct-current electric architectures in cutting-edge data centers, and sharpening focus on data centers’ power and cooling efficiency, Schneider said.

Data center orders accelerated toward the end of 2025 and will likely remain strong through 2026 as projects planned for the next 18 to 24 months take shape, Schneider Electric Chief Financial Officer Hilary Maxson said on an early Thursday earnings call.

Data center orders helped offset weakness in other segments Schneider serves, such as residential and distributed IT, it said.

Schneider serves data center customers through the facility lifecycle, according to the investor presentation the company shared Thursday. It leverages ETAP and NVIDIA Omniverse technologies during design and provides a slew of products and services during the operation phase, including electrical components and high-performance cooling solutions enabled by its recent acquisition of a controlling stake in Motivair. 

Schneider’s breadth positions it well for the shift to 800-volt DC architectures in newer data centers, Blum said on the call. He said the company is developing new solutions that will hit the market later in the decade. Separately, Schneider noted in its presentation Thursday that it’s building a new manufacturing facility in Tennessee that will produce “custom power distribution equipment.”

Schneider reported steady progress with customers outside the red-hot data center industry, including in the building technology vertical that has long been a mainstay. The company sees annual growth of 4% to 5% in building technology over the next five years, driven in part by its software-defined EcoStruxure solutions. 

Customers’ efficiency and sustainability goals — and Schneider’s own — remain critical to the vertical’s performance, Schneider says. It describes its EcoStruxure Building Activate solution, for example, as an “AI-powered platform” that helps small and midsize buildings reduce energy usage and carbon emissions while increasing operational efficiency and improving occupant comfort.

Relatedly, Schneider touted a new five-year "sustainability ambition” covering its own operations and its customers’. It aims to save or electrify 1,500 terawatt-hours of customer energy use between 2026 and 2030, an amount roughly equal to one-third of the United States’ total electricity consumption in 2025, and avoid 1.5 billion tons of customer CO2 emissions between 2018 and 2030.