Nucor Corporation announced 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.
In a press release, the companies said that 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.
The press release said the 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.