As AI surges, Schneider Electric is teaming up with Nvidia to help data centers manage their energy use. Here's how.
The tech company's new data-reference center design aims to cut cooling energy usage by about 20%.
This article is part of "CXO AI Playbook" — straight talk from business leaders on how they're testing and using AI.
Schneider Electric is a global technology company specializing in energy management for software and services, including data centers and industrial automation. Founded in 1836, the company is headquartered in Paris and operates in more than 100 countries. Some of its customers include Microsoft, Google, and Amazon.
Situation analysis
The use of artificial intelligence continues to expand worldwide. Pankaj Sharma, the executive vice president of data centers and networks at Schneider Electric, said as a result, more data centers will be built, the demand for energy will increase, and the environmental impact will grow.
The International Energy Agency estimates that by 2026, the AI industry will use about 10 times the electricity it consumed in 2023. Along with expanding energy, data centers also face the challenge of incorporating cooling systems that enhance energy efficiency and performance.
In December 2024, Schneider Electric announced a partnership with Nvidia to develop tools to help data center operators address their energy and sustainability challenges related to increased AI use. This includes plans for developing AI-focused energy and cooling strategies and AI infrastructure, and consulting support to help data centers reach their sustainability goals.
The partnership includes what Sharma calls "data center reference architectures," frameworks outlining the energy requirements and cooling systems needed to support data processing, business networks, data storage, and other technology. It also includes digital plans and real-time insights to help build new, energy-efficient data centers.
Sharma said the goal is to help companies improve their digital infrastructure by establishing more sustainable, AI-ready data centers.
Key staff and partners
Sharma told Business Insider that Schneider Electric collaborated with Nvidia on the project. He said Schneider's technology teams and data center engineers and architects worked closely with Nvidia's technical teams on the latest partnership to develop and test solutions. The executive leadership and business development teams were also involved.
AI in action
Schneider Electric co-developed a new data-reference center design with Nvidia. This is a plan for building new data centers that support high-density AI clusters of up to 132 kilowatts per data-center server rack. A cluster is a network of servers that power AI, and a server rack is a structure that houses and organizes IT equipment.
Sharma said the reference plan works with Nvidia's superchips, which are designed for large-scale AI and high-performance processing. The project is also built to support liquid cooling, a process of using water or a liquid coolant to absorb and remove heat from large-scale computers and processing units.
Sharma said the new reference designs build on Schneider Electric's existing products, which help remove heat from data centers.
He said the latest designs developed with Nvidia help Schneider Electric's customers organize the development and building of data centers that meet a company's energy and cooling challenges. Sharma added that the plans can be customized for individual companies' requirements for their AI workloads in a more energy-efficient, sustainable way for the future. He said that data centers are already being built using the design created with Nvidia.
"The intent of the design is not to build a real-life, end-to-end replica of the design, but instead, to use various aspects of it to inform customers' initiatives, providing inspiration and guidance as needed," Sharma said.
Did it work, and how did leaders know?
Using virtual modeling and testing, Sharma said that the reference designs developed with Nvidia could help data centers reduce cooling energy usage by about 20%. The plan can also help shorten the time it takes to design and build new data center projects by about 30%, which also saves companies money and enhances sustainability, he added.
"It's not just speed, it's cost and sustainability," Sharma said. "All of these pieces put together are an advantage for all our customers."
Schneider Electric plans to continue working with Nvidia to develop more reference designs over the next few years, Sharma said. The company is also working to create data center designs and infrastructure that can accommodate even higher levels of energy use, as well as the cooling technology necessary to prevent overheating and manage energy consumption.
Read the original article on Business Insider
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
29 minutes ago
- Business Insider
It's a tough time to be a middle manager as layoffs and increased responsibilities bite. BI wants to hear from you.
Middle managers are facing layoffs, and those who remain are taking on extra work. BI wants to talk to middle managers about their experience at work or job hunting. Share your experience by filling out a quick form. Middle managers are the talk of corporate America lately — and Business Insider wants to hear about it. Tech giants like Google and Microsoft, alongside major retailers like Walmart, are looking for ways to cut costs and streamline bureaucracy. Enter, the Great Flattening: A widespread wipeout of mid-career jobs. Laid-off managers are pushed into a rocky job market, and those who remain employed are left with an increasing number of direct reports. Millennials and Gen X, who hold most of the US' managerial roles, are most impacted. Check out BI's stories about middle managers: Middle managers, beware: The Great Flattening has moved beyond Big Tech Millennials, it's a good time to take a break from your manager era The middle manager squeeze at Microsoft has been a career opportunity for me Frustrated job seekers are giving up on their dream roles: 'I'll take almost anything' I'm a 53-year-old middle manager who can't find a job. This market is a black hole. Job searching in 2025? It's a mess no matter how old you are. Amazon CEO Andy Jassy told employees in June he plans to shrink the company's white-collar workforce, citing "efficiency gains." After a round of layoffs, Dell told BI in March that "Through an ongoing series of actions, we are becoming a leaner company," which will include combining some teams. And, alongside a bout of Meta layoffs in 2023, CEO Mark Zuckerberg said that " flatter is faster." "I don't think you want a management structure that's just managers managing managers, managing managers, managing managers, managing the people who are doing the work," he said. If you are a middle manager — or you report to a middle manager — and are comfortable being interviewed for future reporting, please fill out this quick Google form. BI will contact you if we are interested in your story. If you can't see the survey, fill it out here or reach out to this reporter securely via Signal at alliekelly.10.
Hypebeast
2 hours ago
- Hypebeast
Xbox Rolls Back Price Following Fan Pushback
Summary In a significant victory for consumer advocacy,Xboxhas officially reversed its controversial decision to price upcoming first-party titles at $80 USD. Following widespread backlash from the gaming community,Microsoftconfirmed today that its full-priced holiday releases, including the highly anticipatedThe Outer Worlds 2,will now launch at $69.99 USD, aligning with current market conditions. The initial announcement in May 2025 that Xbox's major titles, starting withThe Outer Worlds 2would jump to an $80 price point sparked immediate and fervent criticism from players. Many argued against the price increase, especially for a game like Obsidian Entertainment's RPG, which some felt might not justify a premium tier traditionally reserved for massive blockbusters. The move also saw Xbox following Nintendo, which had recently launchedMario Kart Worldat $80 USD for the Switch 2. The swift reversal by Xbox suggests a direct response to consumer sentiment. Reports indicate that early pre-order numbers forThe Outer Worlds 2may have been lower than anticipated, signaling consumer unwillingness to embrace the new pricing model. Obsidian Entertainment even acknowledged the feedback with a humorous in-universe social media post, joking about 'revising the price' after receiving 'SOS via skip drone' from players. Microsoft's statement confirmed that those who pre-orderedThe Outer Worlds 2at $80 USD will receive refunds. This decision also impacts other major 2025 holiday releases from Xbox, which will now also adhere to the $69.99 USD standard. Earlier this year, Microsoft made the announcement to increase the prices of games for the holiday season. However, it has since backfired. In a recent statement, Microsoft said, 'We understand that these changes are challenging, and they were made with careful consideration given market conditions and the rising cost of development. Looking ahead, we continue to focus on offering more ways to play more games across any screen and ensuring value for Xbox players.' While some in the industry have pointed to rising development costs as a justification for price hikes, Microsoft's quick backtrack underscores the power of collective player feedback in influencing corporate decisions. This development leaves the door open for other publishers, including Sony, to re-evaluate their own pricing strategies in response to strong consumer pushback. Good news to hear. Games should not be $80 — Freeman_san (@Freeman_Sans)July 23, 2025
Yahoo
2 hours ago
- Yahoo
An emboldened China eyes more concessions from US at Stockholm trade talks
For the third time in as many months, US and Chinese officials will meet in Europe for trade talks — and this time, Beijing is arriving at the negotiating table more emboldened than ever. Its firm grip on strategic minerals has compelled the Trump administration to roll back some export curbs on China, including a stunning reversal of the ban on sales of a key Nvidia AI chip. Meanwhile, the Chinese economy has delivered better-than-expected growth months into the trade war, according to government data, posting a record trade surplus that underscores the resilience of its exports as they pivot away from the US market. And just a few days ago, Beijing reinforced its tough posture at a key summit with the European Union, offering little to address the bloc's concerns spanning from trade imbalances to the Ukraine war. When a new round of talks begins in Stockholm on Monday, Chinese negotiators led by Vice Premier He Lifeng are expected to greet their American counterparts with fresh confidence in Beijing's uncompromising, hard-edged approach – and a growing appetite for further US concessions. Treasury Secretary Scott Bessent, who's leading the US delegation, said before the talks in the Swedish capital that the two sides would be working out a 'likely' extension of their trade truce, which currently expires on August 12. The 90-day reprieve, struck at a May meeting in Geneva, held back three-digit tariffs imposed in April that threatened to cut off trade between the world's two biggest economies. The truce was pulled back from the brink of collapse with further talks in London in June, after each side accused the other of reneging on its promises. And now, the Stockholm talks may offer clues as to how much longer that detente can hold – and whether the two countries can further bring down remaining tariffs and address other thorny issues, such as tech restrictions, as they work toward a lasting deal. The latest round of negotiations follows Donald Trump's recent flurry of trade deals with the United Kingdom, Japan, and other trade partners, part of the global tariff war he launched earlier this year. But the US President appears to have dialed down his confrontational approach on China, and has spoken enthusiastically about visiting the country at the invitation of its leader Xi Jinping in the 'not too distant future.' Josh Lipsky, chair of international economics at the Atlantic Council, said a stopgap agreement was the most likely outcome this week. 'Right now, all signs point to another 90-day continuation where tariffs remain at 30% and negotiations continue – with the likelihood of a Trump-Xi meeting in the fall,' he said, referring to the level of Trump's second-term levies on Chinese goods. 'But just as we learned in the spring, the situation can turn on a dime and whether it's the exit bans or another flash point, this is a fragile ceasefire.' It was recently revealed that a US Commerce Department employee and a Wells Fargo executive have been banned from leaving China by the Chinese authorities, casting a shadow over the talks. US Commerce Secretary Howard Lutnick denounced the ban as 'outrageous.' Nevertheless, Bessent struck a positive tone when announcing the latest round of negotiations, saying 'trade is in a very good place with China.' 'I think we've actually moved to a new level with China, where it's very constructive,' he told Fox Business on Tuesday. Bessent said the two countries would also discuss China's purchase of 'sanctioned' oil from Russia and Iran. On Thursday, Lutnick said the proposed spinoff of popular short-video app TikTok's operation in the US, which is awaiting Beijing's approval, would be part of the discussions as well. For their part, Chinese officials have kept the agenda of the talks vague. In a statement last week, the Commerce Ministry said the two sides will 'continue consultations on economic and trade issues of mutual concern, guided by the principles of mutual respect, peaceful coexistence, and win-win cooperation.' Key asks from Beijing For Beijing, a central focus of this week's negotiations are the remaining US tariffs on Chinese imports, according to Chinese experts. At about 55%, the tariff includes a 10% 'reciprocal' tariff the US placed on trade partners in April, 20% levies imposed on China for what Trump said was its role in the flow of illegal fentanyl into the US, and pre-existing duties, according to the White House. Chinese experts say a key priority for Beijing is to seek the removal of the 20% fentanyl-related tariffs. Last month, China announced it would add two more fentanyl precursors to its list of controlled substances, and placed nitazenes – a class of powerful synthetic opioids – on another list of controlled drugs. He Weiwen, a senior fellow at the Center for China and Globalization, a Chinese think tank, told the state-run Global Times that the key focus of this round of talks is to build on agreements reached in previous talks, and push for more 'tangible results.' 'The first priority is resolving the remaining tariff issues, particularly those imposed by the US under the pretext of fentanyl, and the second surrounds how China and the US can further deepen economic and trade cooperation,' said He, who previously served as a diplomat to the US. Beijing may also ask Washington to further roll back technology export controls it has previously imposed on China, including the blacklisting of hundreds of Chinese companies under the Commerce Department's Entity List for trade restrictions, according to Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai. During his first term, Trump began placing tech restrictions on Chinese firms including national tech champion Huawei. His successor, former President Joe Biden, followed up by broadening the scope of the curbs to a wide swath of categories. 'After this period of US-China rivalry, the US side has come to realize that China holds significant cards – and more importantly, is willing to play them when necessary,' said Wu, who is an adviser to China's foreign ministry. The cards, he explained, refer to America's reliance on China's supply chain, including but not limited to rare earths minerals and magnets – needed for everything from everyday electronics and vehicles to fighter jets. At the height of the trade war with the US in April, China leveraged its global dominance in the rare earths supply chain and put new licensing requirements on the exports of seven types of rare earth minerals and several magnets. The significant decline in rare earth exports from China, despite the trade truce reached in May in Geneva, reignited tensions, prompting Trump to take 'countermeasures,' including export controls on chip software, ethane and jet engines. The renewed spat calmed only after the London meeting last month, when Beijing agreed to allow the flow of rare earths and Washington decided to lift its export restrictions. But China has learned the value of its leverage on US. Wu said the country's leverage goes beyond rare earths to – among other things – drone and electric vehicle battery supply chains, where China plays a significant role. The divestment of TikTok US from its Chinese owner ByteDance, which is subject to Beijing's approval, is another card, he said. 'In the past, we didn't consciously use these cards. Now, I believe China will increasingly take the initiative to consider playing them,' he said. On Tuesday, Bessent said he intended to warn Beijing over its continued purchase of sanctioned Russian and Iranian oil, as well as its support for Russia's war against Ukraine. Trump has previously threatened 100% secondary tariffs on goods from countries that continue buying Russian oil, namely China and India, and legislation to that effect has been gaining momentum. Wu said China is unlikely to entertain such a tariff threat and stop importing oil from Russia or Iran, but he said Beijing is aware that the US may leverage the threat, to force its cooperation on issues such as the Russia-Ukraine conflict and talks with Iran. Marc Stewart in Beijing contributed reporting.
