To keep up with a surge in demand for energy-efficient solutions, electrical and automation products manufacturing giant Schneider Electric plans to invest $140 million into its U.S. manufacturing operations in 2024.

The company will invest $85 million initially to transform and equip an existing 500,000-square-foot building in Mt. Juliet, TN and upgrade its existing Smyrna, TN manufacturing operations. Both locations will manufacture custom electrical switchgear and medium voltage power distribution products to bolster support for critical infrastructure, industries, and the escalating demand for data center solutions across the U.S.

The two plants will also incorporate advanced manufacturing technologies and software to improve operational performance, achieve energy savings, and reduce carbon footprint, company officials said in a March 14 news release.

The new plant in Mt. Juliet is expected to begin manufacturing and shipping products to Schneider’s customers by mid-2024 and is expected to be fully operational in 2025.

The company also said it will recruit and employ an additional 455 manufacturing workers across both locations. Roles will range from manufacturing technicians and engineers to test technicians and quality leads, among other manufacturing-related positions.

Electrical Manufacturing Demand

Demand for Schneider’s energy-efficient solutions and sustainability solutions continues to surge, which the company indicated during its full year 2023 financial results announced last month. The company said its U.S. growth was “a function of continued strong demand across its infrastructure and data center end-markets,” the latter due in large part to the growth of artificial intelligence.

“The need for electrical infrastructure to support advanced computing and technological progress has never been greater,” said Aamir Paul, President of North America Operations at Schneider Electric. “These investments will also support implementation of the Infrastructure Investment and Jobs Act and Inflation Reduction Act by strengthening domestic supply of products critical to boost America’s electrification transformation.”

The Tennessee investment is part of Schneider Electric’s commitment to strengthen its American manufacturing presence and create new jobs. Since 2020, Schneider Electric has invested more than $440 million across its American manufacturing network, including constructing its newest 160,000-square-foot smart manufacturing plant in El Paso, TX that opened in the summer of 2023.