Schneider Electric is raising €800 million - roughly $930 million - through convertible bonds maturing in 2034, a move designed to retire older debt and continue funding the company's data center expansion.
The announcement comes as the French industrial giant rides a wave of AI-driven demand. Data centers and networks now account for 20-30% of Schneider's market exposure, and the segment grew 24% in 2024. The company projects annual growth exceeding 10% through 2030.
About €650 million of the proceeds will be used to buy back existing bonds maturing in November 2030. The remaining funds are earmarked for general corporate purposes.
The convertible bonds are expected to carry a coupon between 0.25% and 0.75%, with a conversion premium that gives bondholders the option to convert debt into equity if the stock price rises sufficiently.
Schneider makes circuit breakers, power distribution units, cooling systems, and building management software - essential equipment for every hyperscale data center. The AI buildout has created a demand cycle for power and cooling infrastructure that few industrial companies are better positioned to exploit.
In November 2025, Schneider confirmed $2.3 billion in US data center contracts directly tied to the AI boom. The company has also invested in capacity expansion, including the acquisition of Motivair for advanced thermal management and a collaboration with Nvidia on cooling systems.