US data-centre backlash could boost Legrand's energy-efficient offering, CEO says

US Data-Centre Backlash May Drive Demand for Legrand's Energy-Efficient Solutions

Legrand's Position Amid US Data Centre Scrutiny

By Mathias de Rozario and Etienne Breban

Democratic Victories and Data Centre Concerns

Nov 5 (Reuters) - France's Legrand could benefit if the push for more energy-efficient data centres gathers pace, CEO Benoît Coquart told Reuters after Democrats swept to majorities in both the US Senate and House in midterm elections.

The victories secured by the Democrats, particularly in Texas, have raised fears of an intensifying backlash against data centres, which are becoming increasingly unpopular with local communities, who criticise them for being energy-intensive, water-intensive and noisy. 

Legrand's Response to Environmental Criticisms

"I think these are entirely legitimate questions... it's actually quite positive for Legrand as a whole because, naturally, this should lead to solutions that are more energy-efficient, incorporate more recycled materials and utilise on-site power generation," Coquart said.

Energy-Efficient Offerings and Market Share

"And all of this is part of Legrand's offering: 40% of our turnover in the data centre sector comes from products that help save energy," he added.

Market Outlook and Financial Performance

The company raised its 2026 sales growth guidance for the second time this year on Thursday, as robust data centre demand, accounting for about a third of its turnover, helped drive revenue above market expectations in the first nine months of the year. 

Future Investments and Industry Sentiment

Coquart does not expect a market decline saying the industry will still need large numbers of data centres and sees investments rising despite concerns over rising financing costs.

Customer Perspectives on Data Centre Investment

"What our customers are telling us is: We have invested heavily and we are continuing to invest because we believe in it, and we are more likely to increase than to reduce our investments," he said.

(Reporting by Mathias de Rozario and Etienne Breban in Gdansk; Editing by Shailesh Kuber)