Equipment makers serving AI data centers have reported rapid growth, but Barclays warned that expanding production to meet demand could weaken their pricing power and put future margins under pressure.
Schneider Electric SE said third-quarter revenue rose 16.9% organically as data center demand grew at a triple-digit rate. Pricing contributed more to growth in its Products business than in the previous quarter, the company said. That measure does not isolate data center equipment.
Barclays analyst George Featherstone named Schneider Electric, ABB Ltd., Siemens AG and Siemens Energy AG in an Oct. 20 assessment of the potential pricing pressure. Siemens AG and Siemens Energy are separate companies. Barclays’ warning concerns what suppliers may be able to charge as additional production capacity becomes available.
In an Aug. 6 update, Siemens AG reported triple-digit growth in data center orders at its Smart Infrastructure business for the first nine months of fiscal 2026. That figure covers one business over a longer period than the third-quarter results reported by Schneider Electric and ABB.
ABB reported third-quarter orders of $12.055 billion, up 40% from a year earlier, with data center orders growing at a triple-digit rate. ABB’s group operational EBITA margin was 20.8%, compared with 19.2% a year earlier. ABB said it was expanding capacity incrementally to meet demand.
ABB’s margin covers its wider business, so it does not measure profitability on data center equipment alone. Schneider Electric’s Products pricing measure is also broader than data center equipment.
ABB and Siemens AG reported orders, which record business booked with customers; Schneider Electric reported revenue, or sales recognized during the quarter. The figures show current demand and sales, while Barclays’ assessment addresses the prices suppliers may secure after further capacity comes online.
Schneider Electric is scheduled to report its full-year results on Feb. 18, 2027.
