Key facts
- Volex reported a 14.4% revenue increase to nearly £1bn for the year ending March.
- The company's Complex Industrial Technology unit, which includes data center work, saw turnover jump over 50%.
- Volex CEO Nat Rothschild described the company's approach to data center growth as 'conservative'.
- The company forecasts a further five percent growth in data center revenue.
- Volex shares are up 39% year-to-date.
Volex, a company that supplies key components for data centers, has reported a 14.4% increase in revenue, reaching nearly £1 billion for the year ending March. This growth was largely propelled by a more than 50% surge in turnover from its Complex Industrial Technology unit, which is involved in AI-related data center work.
Despite the strong performance, Volex CEO Nat Rothschild indicated a cautious outlook for the company's data center arm, forecasting only a five percent growth in revenue from this segment. Rothschild stated that the company is not solely reliant on data centers for future growth and is focusing on other areas of its business, emphasizing Volex's diverse operations. He noted that the company's approach to data center growth has been 'conservative,' and while exceeding the five percent forecast is possible, it is not the primary driver for reaching a $2 billion turnover target.
These comments come at a time when major technology companies like Meta, Google, Microsoft, and Amazon are collectively expected to spend $750 billion on AI infrastructure, including data centers, this year. Alphabet, Google's parent company, has already raised $85 billion in debt and plans to raise an additional $80 billion in equity.
Volex shares closed down 1.2% at 575p on Thursday. The stock has seen a 39% increase since the beginning of the year and is scheduled to transition from the AIM market to London's main market next month.