Digital Realty Trust entered into a $373 million supply capacity agreement with Schneider Electric, a global leader in energy technology. The contract covers uninterruptible power supply (UPS) units, low‑voltage switchgear (LVS), and prefabricated skids, and guarantees Digital Realty access to a dedicated LVS production line.
The deal follows Digital Realty’s Q3 2025 earnings, in which the company reported revenue of $1.6 billion and core funds from operations per share of $1.89, both exceeding analyst expectations. The strong financial performance demonstrates the company’s capacity to invest in strategic partnerships that support its growth trajectory.
High‑density artificial‑intelligence and hyperscale workloads are driving a surge in demand for power and cooling infrastructure. By securing guaranteed capacity from Schneider Electric, Digital Realty can scale its power and cooling resources more rapidly, reduce lead times, and mitigate supply‑chain risks that could otherwise constrain its ability to deliver on the PlatformDIGITAL® network.
The agreement focuses on key markets where Digital Realty operates, including North America, Europe, and Asia, and establishes a dedicated LVS production line at Schneider’s manufacturing facility. This arrangement ensures that Digital Realty receives priority access to the latest switchgear technology, enabling the company to meet the specific power density requirements of its data‑center portfolio.
Digital Realty’s chief operating officer Jeff Tapley said, "As demand for digital infrastructure continues to accelerate, securing reliable capacity has become more critical than ever." Schneider Electric’s senior vice president for the Secure Power Division, Vandana Singh, added, "AI workloads and reindustrialization are creating fast‑ramping demand that today’s infrastructure cannot meet."
The partnership strengthens Digital Realty’s pricing power, supports backlog conversion, and positions the company to capture the expanding AI market. By aligning its supply chain with a technology partner that specializes in high‑density power solutions, Digital Realty reinforces its competitive advantage in the data‑center industry.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.