The transaction, which involves Schneider Electric buying an initial 75% interest in Motivair, is expected to close in the coming quarters, pending regulatory approvals. "We estimate the acquisition will add 3% to Schneider's overall data centre sales," said analysts at Morgan Stanley in a note. It is anticipated that Schneider Electric will acquire the remaining 25% of Motivair in 2028. Schneider Electric's position in the data center and networks sector has been a growth driver, representing 21% of the company's orders in the previous fiscal year. "Overall from a strategic standpoint, we view this acquisition as a good fit," said Morgan Stanley. The company has seen growth in this market, with double-digit annual increases in sales since 2017. "Considering the liquid cooling solution is more cost-efficient to the whole data center, we forecast the global liquid cooling TAM to rally from USD997m in 2023 to USD27.8bn in 2030E, representing a 61% CAGR," Jefferies said.