Nucor Corporation (NYSE:NUE) has acquired Southwest Data Products, Inc. (SWDP), a manufacturer and installer of data center infrastructure, for $115 million.
Nucor also launched Nucor Data Systems, a new business unit to cater to the customers in the data center infrastructure industry.
SWDP’s offices and manufacturing facility are in San Bernardino, California, and employs about 147 teammates.
“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 acquisition and the new business unit will provide Nucor’s Warehouse Systems businesses with expanded capabilities in airflow containment structures, as well as new product capabilities for data centers and installation services.
With Nucor’s recycling-based steel production process, sourcing steel from Nucor mills will ensure the nation’s green and digital economy is being built with low embodied carbon steel.
Nucor held $7.1 billion in cash and equivalents as of December 31, 2023.
Price Action: NUE shares are trading higher by 1.15% at $200.19 on the last check Monday.
