The energy management giant is issuing convertible bonds due 2034, using most of the proceeds to retire existing debt while doubling down on AI-driven infrastructure.
Schneider Electric is raising €800 million (roughly $930 million) through convertible bonds maturing in 2034, a financing move designed to retire older debt and keep fueling the company’s data center ambitions. The announcement, made around June 4, 2026, comes as Schneider rides a wave of demand for AI infrastructure that has turned its data center division into arguably its most important growth engine.
Here’s the breakdown: about €650 million of the proceeds will go toward buying back existing bonds that mature in November 2030. The rest gets earmarked for general corporate purposes.
The deal structure #
The convertible bonds are expected to carry a coupon between 0.25% and 0.75%, with a conversion premium attached. Bondholders get the option to convert their debt into equity later if the stock price rises enough.
Why data centers are driving everything #
Schneider Electric makes circuit breakers, power distribution units, cooling systems, and building management software. Every hyperscale data center on the planet needs that equipment, and the AI buildout has created a demand cycle for power and cooling infrastructure that few industrial companies are better positioned to exploit.
Data centers and networks account for approximately 20-30% of Schneider’s market exposure. In 2024, the data centers and networks segment grew 24%. Schneider projects annual growth in its data centers and networks business exceeding 10% through 2030.
In November 2025, Schneider confirmed $2.3 billion in US data center contracts directly linked to the AI boom, with the segment continuing to show double-digit growth into 2025.
Schneider has also invested in capacity expansion and strategic partnerships, including the acquisition of Motivair for its advanced thermal management capabilities and a collaboration with Nvidia on cooling systems, reinforcing its competitive position across electrical distribution, liquid cooling, and digital optimization solutions.
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