Nucor Corporation acquired Southwest Data Products, Inc., a manufacturer and installer of data center infrastructure for $115 million.
"We are excited to add SWDP and new teammates to our Nucor family of companies. This acquisition will give us new capabilities to serve a rapidly growing market and will bolster Nucor as a preferred supplier to many of the nation's largest and most innovative hyperscale cloud and colocation data center operators," says Chad Utermark, EVP of new markets and innovation. "The SWDP acquisition furthers our expand beyond strategy to invest in steel centric businesses that operate outside of the cyclical nature of steel production."
Nucor is also launching Nucor Data Systems, a new business unit that will help better serve our customers in the data center infrastructure industry.
Key takeaways:
- SWDP's offices and manufacturing facility are in San Bernardino, Calif., and the company employs approximately 147 teammates.
- Specifically, SWDP and Nucor Data Systems will provide Nucor's Warehouse Systems businesses with expanded capabilities in airflow containment structures, as well as new product capabilities that include manufacturing cabinets/enclosures and caging for data centers and installation services.
- This acquisition also creates a number of synergies with Nucor's core steelmaking business. SWDP uses many types of steel as raw material that can be provided by Nucor facilities, including sheet steel, steel tubing and wire mesh.
