Legrand raises medium-term targets as data centre demand boosts growth outlook

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Legrand raises targets on data centre growth

Highlights

Legrand raised its average organic revenue growth target to 6%-8% per year for 2027-2030, up from 3%-5% previously, citing strong data centre demand.
Adjusted operating margin is now forecast to average 21%-22% of sales through 2030, compared to around 20% under the earlier outlook.
Legrand projects revenue from energy and digital transition activities, including data centre infrastructure, will rise from 53% in 2025 to 70% by 2030.

Updated targets ahead of capital markets day

As reported by Reuters, Legrand says it now expects average organic revenue growth of 6% to 8% a year between 2027 and 2030, compared with its previous 2025-2030 guidance of 3% to 5%. The group also forecasts an adjusted operating margin averaging 21% to 22% of sales, versus around 20% under its earlier outlook.

Chief Executive Benoit Coquart says the company has been outperforming the goals it set in 2024, supported by strong demand from data centres, which are making up a rising share of revenue. Speaking ahead of Tuesday's Capital Markets Day, he says clients are continuing to expand AI investment plans and that the sector's momentum is expected to continue in the coming years.

Coquart says installed IT data centre capacity currently stands at 80 gigawatts and is expected to rise to 180 gigawatts by 2030. He also says Legrand's business mix is shifting through acquisitions in energy and digital transition activities, planned divestments in its core business, and differing rates of organic growth across segments.

Portfolio shift reshapes revenue mix

Legrand expects the share of turnover from its historical building business to decline, while revenue from energy and digital transition activities, including data centre infrastructure and energy management solutions, is set to increase from 53% of total revenue in 2025 to around 70% by 2030.

The company says its construction business in Europe is expected to return to moderate growth of 1% to 3%. Coquart adds that conditions are slightly less positive in the U.S. for both residential and commercial business areas.

Our earlier article on the Philippines’ push to attract data centre investment outlined how the country could benefit from capacity constraints in more mature Southeast Asian markets, provided it improves subsea connectivity, power reliability, and permitting speed. It highlighted plans for a nationwide undersea fiber network, a growing pipeline of capacity under construction, and government targets to draw large-scale investment tied to AI infrastructure buildout.

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