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.