Hon Hai partners with Schneider Electric on AI data center development

Taipei, June 15 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. announced Monday that it has formed a strategic partnership with French energy technology company Schneider Electric to develop and scale the next generation of AI data centers.

In a statement, iPhone assembler Hon Hai, known internationally as Foxconn, said the collaboration will combine the company's strength in computing platforms, AI rack integration and global manufacturing capacity with Schneider Electric's expertise in power systems, cooling technologies and energy management.

The partners will also jointly develop next-generation reference architectures for AI data centers, exploring innovations in closed-loop energy optimization, modular power and cooling systems, and standardized design frameworks.

The goal is to create repeatable, high-performance blueprints for AI factories worldwide, Hon Hai said.

It added that under the partnership, the two companies aim to deliver integrated, ready-to-deploy solutions that will enable customers to build and operate AI infrastructure more quickly, efficiently and reliably across different regions.

Hon Hai said production under the partnership is scheduled to begin later this year.

"At the pace AI is evolving, the industry requires a new model for how infrastructure is designed, built and delivered," Hon Hai Chairman Young Liu (劉揚偉) said in the statement.

"By combining Foxconn's strengths in AI systems and global manufacturing with Schneider Electric's deep expertise in power and energy, we are creating a path for customers to deploy AI capacity at scale - faster, smarter and more sustainably," Liu said.

Schneider Electric CEO Olivier Blum said the partnership with Hon Hai will help customers "build capacity with real speed, resilience and efficiency" as the industry enters "the era of intelligence."

To capitalize on the rapid growth of AI applications, Hon Hai has expanded its AI server business as part of its broader diversification strategy.

Currently, Hon Hai holds about a 40 percent share of the global AI server market, according to the company.