Nucor to Acquire Manufacturer of Data Center Infrastructure

2 April 2024

Nucor Corporation  announced today that it has acquired Southwest Data Products, Inc. (SWDP), a manufacturer and installer of data center infrastructure for $115 million. SWDP's offices and manufacturing facility are in San Bernardino, California and the company employs approximately 147 teammates.  Nucor is also announcing the launch of Nucor Data Systems, a new business unit that will help better serve our customers in the data center infrastructure industry.

"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," said Chad Utermark, Executive Vice President 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."

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. SWDP's compatibility with Nucor Warehouse Systems' current manufacturing capabilities will create significant growth opportunities, and SWDP's location near Nucor Warehouse Systems' production facility in southern California will facilitate both integration and growth efforts.

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. With our circular, recycling-based steel production process, sourcing steel from Nucor mills will ensure our nation's green and digital economy is being built with low embodied carbon steel.

SWDP has a strong reputation for high quality products, fast lead times, and quality installation services. The company has an exceptional customer base of leading companies requiring data centers. Growth in data centers is being fueled by the increasing use of artificial intelligence, cloud-based services and video streaming across a growing number of applications.a