Steel Mills

Nucor buys Southwest Data Products for $115M

April 1, 2024

Nucor has acquired Southwest Data Products (SWDP), a manufacturer and installer of data center infrastructure, for $115 million.

The Charlotte, N.C.-based steelmaker also announced it has launched Nucor Data Systems. This is a new business unit that will serve customers in the data center infrastructure industry.

SWDP, with ~147 employees, has a manufacturing facility and offices in San Bernardino, Calif.

“The SWDP acquisition furthers our expand beyond strategy to invest in steel-centric businesses that operate outside of the cyclical nature of steel production,”Chad Utermark, Nucor EVP of new markets and innovation, said in a statement on Monday.

Nucor said the buy “creates a number of synergies with Nucor’s core steelmaking business.” The company noted that SWDP uses many types of steel as a raw material that can be supplied by Nucor facilities. These include 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,” Nucor added.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.