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Nucor to buy data center gear company for $115M

Steel sheets made by steel maker Nucor

Steel sheets made by steel maker Nucor. Image: Courtesy of Nucor

Steel maker Nucor said it agreed to buy data center infrastructure provider Southwest Data Products for $115 million.

Why it's the BFD: The number of planned data centers is exploding as tech companies build facilities to jump on the AI boom.

Zoom in: Nucor said along with the deal, it's launching a new unit focused on selling data center infrastructure called Nucor Data Systems.

  • Prior to the acquisition Nucor was already selling warehouse infrastructure through its Warehouse Systems division.
  • Nucor says the acquisition and new business has synergies with its core steel-making business, as various data center infrastructure uses steel.

The big picture: The surge in new data centers planned is causing a shift in sectors, including utilities.

  • Electricity demand is booming and energy companies are struggling to meet the challenge with clean electricity.
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