Schneider Electric Maintains Sustainable IT Services Momentum Despite Potential Geopolitical Headwinds

Schneider Electric continues to aggressively and successfully promote sustainable IT services -- particularly in the data center market -- even as potential geopolitical headwinds emerge in North America and Europe.

"Our mission is to be the trusted partner in sustainability and efficiency," CEO Olivier Blum (pictured above) said during Schneider Electric's quarterly earnings call with Wall Street analysts on February 20, 2025. "What does it mean? With the need for more electrification and digitalization, we do believe that we have a unique portfolio, unique position by end market, very balanced revenue across different geographies, which give us the confidence that we can continue to drive strong results and consistent value for all our shareholders."

This was Blum's first earnings call as Schneider Electric's CEO. The board ousted former CEO Peter Herweck and installed Blum as the company's new chief executive officer in November 2024.

Schneider Electric Q4 2024 Business Performance: Where Sustainability Fits In

Among the key business and financial metrics to note from Q4 of 2024, Schneider Electric said:

• Revenue was €10,669 million, up +12.5% from Q4 of 2023.
• Energy management revenues experienced double-digit percentage growth, and the industrial automation business returned to growth.
• Digital Services experienced double-digit percentage growth in Q4, driven by "strong performance in EcoStruxure Advisors and Sustainability offers," the company said.
• Field Services experienced double-digit percentage growth in Q4, driven by energy management trends associated with data centers, infrastructure and the renovation of non-residential buildings in mature economies, the company noted.

Dig a little deeper into the Q4 2024 financial results press release, and the term sustainability appears 21 times. That's welcome news for Chris Leong, who became Schneider Electric's chief sustainability officer (CSO) in January of 2025.

Looking ahead, Schneider Electric expects to complete the Motivair acquisition in the next few weeks. The deal, announced in October 2024, involves liquid cooling data center expertise. The $850 million purchase price involves 75% of Motivair. The buyer expects to purchase the remaining 25% in 2028.

Moreover, Schneider Electric reiterated its revenue guidance for 2025, targeting organic revenue growth of 7% to 10% or so.

Sustainable IT Services: Potential Geopolitical Headwinds, Data Center Opportunities

Schneidder Electric's continued focus on sustainability comes at a key time. In the United States, President Donald Trump has issued several executive orders that may pressure energy transition, ESG and sustainability companies. And in the European Union, some member companies are trying to scale back regulations such as CSRD (Corporate Sustainability Reporting Directive).

Still, this shift to power-hungry AI data centers should fuel ongoing demand for managed energy services and sustainable IT services, proponents assert.