Schneider Electric and UTEC to Drive Localization and Growth in Saudi Arabia's Data Center Industry

Schneider Electric, a global leader in energy management and automation, announced a strategic partnership with United Technology of Electric Substations and Switchgears (UTEC), a leading player in the Kingdom's electrical power distribution and control equipment manufacturing sector. This collaboration aims to significantly enhance local value creation within Schneider Electric's data center business. 

UTEC will undertake the complete integration of Schneider Electric's modular data center systems, leveraging its local resources and expertise to achieve a localization target of over 45%. This includes Engineering and design, Manufacturing and assembly, Equipment integration, Testing and inspection, and after-sales support. 

"We are excited to partner with UTEC to drive localization and empower Saudi talent within our data center business. This strategic partnership between Schneider Electric and UTEC marks a significant milestone in the development of Saudi Arabia's data center industry," said Mohammed Shaheen, Cluster President, Saudi Arabia, Yemen, Bahrain and Pakistan at Schneider Electric. 

"This collaboration aligns perfectly with our commitment to supporting the Kingdom's Vision 2030 goals and fostering a robust data center ecosystem within the country. By leveraging UTEC's expertise and local presence, we can significantly increase the local content of our modular data center solutions, while creating jobs and stimulating economic growth."

"We are excited to join forces with Schneider Electric, a global leader in the data center industry. This partnership presents a unique opportunity for UTEC to contribute to the localization of data center solutions in Saudi Arabia. We are confident that our combined expertise and resources will enable us to deliver innovative and sustainable solutions that meet the growing needs of the Kingdom's data center market," said Wael Gad, Chief Executive Officer, UTEC.

“By working close with KSA based resources, nurturing talent, and fostering innovation, the collaboration aims to create a lasting positive impact on the Kingdom's economy and technological landscape.”

The collaboration is aiming to deliver significant benefits, including Increased local added value with over 45% localization for Schneider Electric's modular data center business in Saudi Arabia, Economic growth via job creation, knowledge transfer, and contribution to the development of Saudi Arabia's industrial sector. Knowledge transfer thought the upskilling of the Saudi workforce and fostering a culture of innovation and technological advancement and sustainability by reduced carbon emissions associated with transportation and a more resilient supply chain.

The partnership prioritizes capacity building and workforce development. Both companies are committed to training and upskilling Saudi talents, cultivating a skilled workforce capable of driving innovation and excellence in the modular data center industry.

UTEC established in 2001 is a subsidiary of Bawan Group, a Saudi publicy listed conglomorate. UTEC has been a leading Electrical Solutions Provider with a manufacturing footprint of more than 120,000 square meters across several factories, producing Medium Power Oil Transformers, Dry Type Distribution Transformers, Unit, Package, Prefabricated and Mobile Substations, Medium Voltage Switchgears, Low Voltage Switchgears, all types of Panels and Modular Prefabricated Data Centers. UTEC has its products available in more than 20 countries across the world.

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