Schneider Electric Lifts Guidance on Booming Data-Center Market

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessSchneider Electric Lifts Guidance on Booming Data-Center MarketSchneider Electric SE raised its sales and profit guidance after an artificial intelligence-driven spending spree drove unprecedented demand for its data-center equipment.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.q)p{5itie178nktu8}06t0vv_media_dl_1.png Bloomberg(Bloomberg) — Schneider Electric SE raised its sales and profit guidance after an artificial intelligence-driven spending spree drove unprecedented demand for its data-center equipment.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe French manufacturer now expects organic revenue to expand this year by as much as 13%, compared with up to 10% in its previous forecast. It also hiked its target for organic growth in adjusted earnings before interest, taxes and amortization, and expects a stronger margin.A triple-digit surge in demand from data-center customers helped fuel a record second quarter, the company said Thursday. Core sales in the energy management division, which serves data center and grid infrastructure customers, increased by 18%, more than the 12% analysts expected.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againTechnology giants have been splurging hundreds of billions on the AI data centers that use electrical and cooling equipment made by Schneider and its peers — including Switzerland’s ABB Ltd., Germany’s Siemens AG and US-based Vertiv Holdings Co.Schneider has also been developing data-center architecture directly with the likes of Foxconn and Advanced Micro Devices Inc., as surging power requirements in higher-density server farms force closer collaboration between chipmakers and infrastructure suppliers.High expectations fueled by AI demand can lead to volatility in the market. Vertiv shares plunged on Wednesday after second-quarter sales missed estimates, exposing a “high bar, not demand weakness,” according to Bloomberg Intelligence.Electrical system supplier GE Vernova Inc. also dropped this month after a “relatively modest” upgrade to guidance, according to Citi analysts, underwhelming investors.Schneider’s industrial automation segment, which specializes in factory software and digital transformation, reported sales growth of 11% for the second quarter, also ahead of expectations.The company is turning to acquisitions to drive expansion. After buying industrial AI firm Cognite for $3.1 billion last month, it’s in talks to acquire Shelly Group SE, a maker of smart home devices, in a deal valued at €1.3 billion ($1.5 billion).Shelly confirmed yesterday it was in preliminary discussions with Schneider on a potential tender offer for all shares of the Sofia, Bulgaria-based company. Schneider said Thursday it acknowledged Shelly’s statement and will not be commenting further.—With assistance from Sasha Draeger-Mazer.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.