A quiet revolution is unfolding in Europe’s industrial sector, as some of the continent’s oldest electrical equipment makers see explosive market value growth—fuelled not by legacy manufacturing, but by the AI data centre boom. As the Financial Times reports, four titans — Schneider Electric, Siemens AG, ABB, and Legrand — have collectively added more than €150bn to their market capitalisations since the launch of ChatGPT in late 2022.
These companies, long known for manufacturing switches, meters, and power infrastructure, are now at the heart of a global AI arms race. While American giants like Microsoft and Meta make multibillion-dollar bets on large language models and cloud computing, European firms are quietly supplying the “nuts and bolts” of the digital infrastructure — from intelligent switches to cooling systems for high-performance servers.
“We’re not putting $70 or $80bn on the table like Microsoft and Meta,” said Legrand CFO Franck Lemery. “But we [provide] the components and our business is growing relative to that [spending].”
According to Dell’Oro analyst Alex Cordovil, European firms dominate the essential infrastructure layer powering AI. Since late 2022, Siemens has seen its share price surge over 60%, while Schneider Electric, now worth €127.9bn, has overtaken French oil major TotalEnergies — a symbolic shift from fossil fuels to digital electrification.
Schneider Electric: Betting Big on Critical Power
Schneider’s transformation began with its $6.1bn acquisition of American Power Conversion (APC) in 2006, a move initially criticized for its price tag. But it paid off handsomely, giving Schneider a first-mover advantage in data centre power infrastructure. By 2024, data centres accounted for 24% of Schneider’s total orders, up from 19% in 2022.
In 2023, Schneider took a controlling interest in Motivair, a specialist in liquid cooling — a key technology for next-gen AI chips from companies like Nvidia, which require far more advanced thermal management than conventional air-cooled systems.
CEO Olivier Blum called AI a “fundamental change of paradigm” for IT and electric infrastructure, underscoring Schneider’s pivot away from traditional industrial roles.
Legrand: From Porcelain Switches to Silicon Servers
Legrand, founded in 19th-century France, has shifted dramatically in recent years toward data centres. Sales from data centre-related orders hit 20% in 2024, up from 10% in 2019. The company has made 10 acquisitions in the past year alone — six tied directly to data centres.
Still based in Limoges, Legrand faces geopolitical headwinds. CEO Benoît Coquart recently warned that escalating US tariffs on Chinese goods could cost the company up to $200mn this year, as Legrand has a large client base in the U.S.
Despite this, Lemery remains bullish: “We’re very, very confident about the promise of our portfolio. We have to live with these ups and downs.”
ABB: Quiet Power Player in the AI Infrastructure Race
Swiss-Swedish conglomerate ABB has increasingly focused its $33bn business on electrification, where data centre orders now account for 15% — up from 9% in 2022. These sales are growing rapidly, at an average annual rate of 24% since 2019.
CEO Morten Wierod said ABB is working closely with major hyperscale operators to ensure safe, energy-efficient infrastructure for their expanding AI workloads. ABB’s offerings include backup battery systems and grid-stabilizing power infrastructure, touted as greener alternatives to diesel generators.
Still, ABB hasn’t been immune to volatility. Its stock was rattled after reports emerged that Microsoft had cancelled certain leasing contracts, a reflection of how hyperscaler demand can sway industrial suppliers.
Siemens AG: Playing Catch-Up — But Gaining Ground
Germany’s Siemens, traditionally focused on automation and industrial equipment, has accelerated investments in data centre infrastructure over the past three years. While it remains smaller in this niche than peers like Schneider, the company saw 45% growth in its data centre business in the first half of the 2024 fiscal year, reaching €1.3bn.
However, growth has not been without setbacks. Siemens recently reported a 16% drop in electrical orders, blaming a pause in spending by a key hyperscaler customer. Analysts say the company is now directing more focus and capital into data infrastructure to catch up.
“Siemens and ABB have been focused on other areas and now they’re bringing their capabilities to bear,” said Kepler Cheuvreux analyst William Mackie.
Outlook: A Quiet but Steady Revolution
Despite market turbulence and geopolitical risks, analysts remain optimistic. Dell’Oro forecasts global capex on data centres will grow from nearly $600bn in 2025 to over $1tn by 2028, cementing long-term demand for the products and services these European firms provide.
While American tech giants dominate the AI spotlight, Europe’s industrial stalwarts are securing their future by becoming indispensable partners in the AI infrastructure revolution — turning legacy expertise into digital gold.
