Steelmaker Nucor Corporation has acquired a data center supplier and launched a dedicated unit to supply data center customers.

The company this week announced that it has acquired Southwest Data Products, Inc. (SWDP), a manufacturer and installer of data center infrastructure for $115 million.

Nucor is also announcing the launch of Nucor Data Systems, a new business unit that will help better serve its customers in the data center infrastructure industry.

Based in San Bernardino, California, SWDP's offices and manufacturing facility are in San Bernardino, California and the company employs approximately 147 people.

Nucor said SWDP and the newly launched 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.

"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, EVP 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."

Nucor manufactures steel and steel products, with operating facilities in the United States, Canada, and Mexico. Products include carbon and alloy steel; structural tubing; electrical conduit; steel racking; girders; fabricated concrete reinforcing steel; wire and wire mesh; and utility structures.

Nucor said the deal for Southwest creates a number of synergies with Nucor's core steelmaking business. SWDP uses many types of steel as raw materials that can be provided by Nucor facilities, including sheet steel, steel tubing, and wire mesh.

Nucor Warehouse Systems produces and installs custom-designed steel racking systems for data centers, warehouses, and other industrial buildings. The unit was launched in 2022 after Nucor acquired warehouse rack companies Elite Storage Solutions and Hannibal.