Nucor buys data infrastructure firm

 

Nucor Corp. purchased 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 nearly 150 people. Nucor also launched a new business unit, Nucor Data Systems, to help better serve customers in the data center infrastructure industry.
 
“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."
 
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.