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AUGUST 2026 I I-CONNECT007 MAGAZINE 55 Will circularity become a bigger part of the conver- sation again soon? Yes, circularity is important, and part of Schneider's mission. When it comes to facility modernization, we try to minimize the work required and use what is already in place as much as possible. Even the ret- rofits are focused on the smaller parts that can be changed out rather than the housing and metalwork. We are also paying attention to the expected lifecycle of the data center as chip technology continues to advance. Extending a center's lifecycle, especially as AI is applied to more and different use cases, is an important question. Where AI Data Centers Are Being Built Where do you see the greatest geographic push for new data center builds? North America currently leads AI deployments, driv- en by access to advanced GPUs and significantly higher rack densities than many other regions. It is the difference between 132–600 kilowatts historical- ly, to racks now pushing around 1 megawatt, then to skidded solutions enabled by modular CDUs ranging from 105 kW to 2.5 MW, with Motivair by Schneider Electric's liquid cooling portfolio scalable to 10 MW and beyond to meet the demands of next-generation AI data centers. So, the scale of deployments is very different. We're starting to see that change in South- east Asia and Europe as chip availability shifts. What is an optimum power arrangement for a mod- ern AI data center? The answer is not simple, and differs geographically, by climate, and by state. AI data center development is underway in Texas, Virginia, Nevada, and Phoe- nix. Each state has different rules and regulations as to how it can build and where it can access power. Some can build their own substations; others cannot. Outside the U.S., Saudi Arabia is a good example of a country funding access to power, much of it through gas turbines that drive desalination, providing low-cost power for that region. The Nordics have strong access to renewable energy, especially hydro. So, each place has different dynamics that drive the "optimum" data center design for power. What do you think about Phoenix specifically? We have a lot of semiconductor development there, but we have issues with water and power. Our real- ity is that we are 115°F for several weeks out of the year, so, to the average person, development here seems counterintuitive. Phoenix has good access to power and land. The trade-off is that you need more mechanical cooling year-round. But the desert is dry, which helps cool- ing, and in the evenings, temperatures can drop 20 or more degrees. Those big swings are advanta- geous for natural cooling. AI data centers are working with hot water temperatures of 40°C (104°F). A location that lets you take advantage of free cooling hours and days throughout the year is very important. A regular person is considering the worst-case temperatures in the middle of the day. They want to keep their house around 70°F. That isn't needed for a data center. If it drops to 90°F at night, a data center can take advantage of that delta, providing cooling without using compressors or water to cool the chip. That wouldn't be comfortable for you and me, but it's fine for the IT equipment. Building a Resilient Supply Chain With manufacturing sites in many countries, what does Schneider's primary supply chain look like? Do you have local supply chain partners for your different manufacturing locations? We rely on a combination of global and local suppli- ers, emphasizing redundancy through what Schnei- der calls the "Power of Two": multiple manufacturing locations and multi-sourced supply chains. We try to have some portion of the build that's locally sourced, but that isn't always possible. If we face an issue such as a natural disaster, our approach mitigates risk. Motivair experienced that last year in the U.S., but their affected local supplier also had a factory in Germany that could supply back to the U.S. It didn't disrupt Schneider's ability to build and ship product. Andrew, it has been a pleasure meeting and talk- ing with you. This has been a real learning experi- ence for me. Thank you. I-CONNECT007 SPECIAL SECTION ▼