Schneider Electric beats organic growth forecast as AI boom fuels data centre demand
30/10/2025 06:30
By Gianluca Lo Nostro and Jerome Terroy Oct 30 (Reuters) - Schneider Electric's SCHN.PA organic revenue growth beat quarterly estimates on Thursday, propelled by surging demand for data centres that power artificial intelligence, as the French industrial group cements its role as a key supplier for the sector. Third-quarter revenue grew 9% organically to 9.72 billion euros ($11.7 billion), exceeding the average growth forecast of 8.4% from analysts polled by the company. Schneider Electric has cushioned the blow of U.S. President Donald Trump's import tariffs by bolstering its supply chain and making plans to invest more than $700 million in U.S. expansion through 2027, though it raised prices in the process. Sales in the data centres and network market climbed by a double-digit percentage led by U.S. clients, the company said. Strong contributions came from China and France too, but grid power availability in other European remained an obstacle. Since it bought U.S.-based data centre cooling firm Motivair in February, Schneider has capitalised on the rapid expansion of data centres, where AI and cloud services require vast amounts of electricity and cooling. The French group, long known for industrial components like fuses and circuit breakers, builds the backbone of data centres. It supplies power equipment, cooling and server racks that keep AI and cloud services running without interruption. ($1 = 0.8575 euros) (Reporting by Gianluca Lo Nostro and Jérôme Terroy in Gdansk; Editing by Milla Nissi-Prussak) ((gianluca.lonostro@thomsonreuters.com;))