As AI surges, Schneider Electric is teaming up with Nvidia to help data centers manage their energy use. Here's how.

As the demand for artificial intelligence continues to rise, Schneider Electric is taking significant steps to address the energy challenges faced by data centers. The global technology leader, which specializes in energy management and automation solutions, understands that the rapid expansion of AI will drastically increase energy consumption in data centers worldwide. Pankaj Sharma, Schneider Electric's executive vice president for data centers and networks, emphasizes the urgency of this situation. According to the International Energy Agency, the electricity consumption of the AI sector is projected to increase tenfold by 2026 compared to 2023 levels. This shift not only heightens energy demands but also amplifies environmental concerns, prompting Schneider Electric to seek innovative solutions. In a strategic partnership with Nvidia announced in December 2024, Schneider Electric aims to develop advanced tools that help data center operators tackle their energy and sustainability challenges associated with the growing use of AI technologies. The collaboration focuses on creating AI-driven energy and cooling strategies, along with consulting support to assist data centers in achieving their sustainability objectives. The initiative includes the development of what Sharma refers to as "data center reference architectures," which are essential frameworks outlining the energy and cooling requirements necessary for efficient data processing and technology operation. These architectures will offer digital plans and real-time insights to foster the construction of energy-efficient data centers. Sharma remarked that Schneider Electric's teams worked closely with Nvidia’s experts to co-create a new design for data centers capable of supporting high-density AI workloads, with server racks configured to handle up to 132 kilowatts. This design is compatible with Nvidia’s advanced superchips, optimized for large-scale AI processing. Moreover, the partnership is paving the way for the implementation of liquid cooling systems, which utilize liquid coolants to effectively manage heat in substantial computing environments. The newly developed reference designs are built upon Schneider Electric's established products that facilitate heat removal, enabling clients to construct data centers that meet their unique energy and cooling demands. Sharma highlighted that the designs are flexible and can be tailored to meet individual company requirements, ensuring a more sustainable approach to AI operations in the future. As a testament to their effectiveness, data centers utilizing these innovative designs are already being established. The intention behind these reference designs is not to create a one-size-fits-all solution but rather to inspire and guide customers in their initiatives. Utilizing virtual modeling and testing, these designs are expected to reduce cooling energy consumption by approximately 20% and expedite the design and construction phases of new data center projects by around 30%. This not only translates to cost savings but also supports enhanced sustainability efforts. Looking ahead, Schneider Electric plans to expand its collaboration with Nvidia to develop additional reference designs in the coming years. The focus will remain on creating data center solutions that can handle increasing energy demands while incorporating the necessary cooling technologies to ensure efficient energy management.