Key Takeaways

  • Schneider Electric raised its 2026 organic revenue and adjusted EBITDA growth forecasts following record third-quarter sales.
  • Triple-digit quarterly data-centre demand and stronger visibility into 2027 and 2028 point to a durable infrastructure backlog.
  • Rising rack density is shifting spending toward electrical distribution, cooling, backup power and grid connections.

Schneider Electric has upgraded its 2026 financial targets again as artificial intelligence infrastructure spending feeds exceptional demand for data-centre power, cooling and electrical equipment. The revised outlook calls for organic revenue growth of 12-14%, up from 10-13%, according to Reuters. Schneider Electric also expects adjusted EBITDA growth of 18-21%, compared with its previous range of 14-19%.

The revision followed a record third quarter in which revenue reached €11.46 billion. Data centres remained a central growth driver, with Schneider Electric reporting triple-digit quarterly demand growth while continuing to convert its existing backlog into sales. Schneider Electric also said it was gaining visibility into projects scheduled for 2027 and 2028, an important signal in a market where construction schedules, power availability and equipment lead times can shape revenue years in advance.

AI computing is fundamentally changing the physical design of data centres, rather than simply creating demand for more servers. Higher-density accelerator clusters draw substantially more electricity and produce more heat than conventional enterprise systems, increasing requirements for switchgear, uninterruptible power supplies, busways, cooling systems and monitoring controls. Those are precisely the layers where Schneider Electric has a broad presence.

The demand backdrop is exceptionally strong. The International Energy Agency reported that global data-centre electricity consumption rose 17% in 2025, while electricity use at AI-focused facilities increased 50%. Total data-centre consumption is projected to rise from 485 TWh in 2025 to roughly 950 TWh by 2030. That scale of growth puts pressure not only on data-centre operators but also on utilities, grid planners and local permitting authorities.

Capital spending reinforces that picture. The five largest technology companies invested more than $400 billion in capital expenditure in 2025, with spending expected to increase another 75% in 2026, according to published source data. Microsoft, Amazon Web Services and Google are among the hyperscalers supporting the build-out, raising ongoing questions regarding whether planned capacity can obtain grid connections on schedule.

Power density makes the challenge more immediate. A leading AI server rack could reach peak demand equivalent to 65 households by 2027. Traditional air cooling may be insufficient for some of those deployments, pushing operators toward liquid cooling and redesigned power-distribution architectures. Even seemingly mundane components can become schedule-critical when thousands of racks are involved. Electrical infrastructure is no longer a background consideration.

That shift helps explain why Schneider Electric’s higher revenue outlook is accompanied by an even stronger adjusted EBITDA growth forecast. Greater volume can support operating leverage, although the eventual margin outcome will still depend on product mix, supply-chain execution and the timing of large projects. Bloomberg also reported the latest guidance increase as demand tied to data-centre construction continued to accelerate.

Competition remains substantial. Vertiv and Eaton also sell power, cooling, racks and electrical systems into the data-centre market. Customers frequently spread orders across multiple vendors to reduce delivery risk, particularly where transformers, switchgear or cooling equipment have long lead times. Schneider Electric’s backlog and expanding forward visibility suggest that capacity planning and execution could matter as much as winning individual contracts.

For technology buyers, AI deployment plans increasingly depend on facilities engineering, utility coordination and thermal design, not only processor availability. Schneider Electric’s upgraded outlook offers another measure of how quickly that spending is moving from experimental computing projects into physical infrastructure. While demand remains robust, power access, cooling performance and construction capacity will ultimately determine how much of the planned expansion becomes operational on time.