AI Powers Industrial Surge

European electrical equipment manufacturers like ABB and Legrand are experiencing significant growth due to the increasing demand for data centre infrastructure driven by the AI boom. These companies are providing essential components such as server racks, electrical equipment, and cooling technologies that enable AI giants to develop faster and more efficient computing models. Data centre revenues for the top electrical firms have doubled in the last five years, reaching €20 billion in the past year alone. Analysts predict continued growth of around 15% annually through 2027.

Legrand, in particular, has seen outstanding growth in its data centre business, driven by strong demand in the US market. The company's first-quarter sales surpassed expectations, with organic sales growth of 7.6%. Legrand is focused on providing energy-efficient and sustainable solutions to address the challenges posed by AI's increasing power and cooling demands. Innovations like the ColdLogik RDHx offer sustainable cooling alternatives that can significantly reduce energy consumption in data centres.

While the AI boom presents challenges such as power supply delays and increasing energy consumption, companies like Legrand are committed to developing innovative solutions to ensure the sustainability and efficiency of data centres. These solutions include optimising energy management, enhancing security, and providing the necessary infrastructure to support the continued growth of AI technologies.