Key facts
- UPS CEO Carol Tome estimates a $15 billion annual revenue opportunity from the data center boom.
- Global data center spending is projected to reach $1 trillion in 2026 and more than double by the end of the decade.
- UPS is handling critical components for data centers, including microprocessors and large equipment.
- UPS raised its annual revenue and profit forecasts following better-than-expected third-quarter earnings.
- UPS's healthcare segment generated $6 billion in revenue in 2020 and is forecast to reach $13 billion this year.
UPS CEO Carol Tome told Reuters on Tuesday that the artificial intelligence data center boom presents a significant, long-term opportunity for the logistics company, estimating the related market at $15 billion annually. The company is focusing on handling fewer, but more premium, shipments, including critical components for data center construction and operation. This strategy aligns with Tome's 'better, not bigger' growth plan, which involves reconfiguring UPS's network to be more profitable and focusing on high-margin segments like healthcare and data centers. UPS recently raised its annual revenue and profit forecasts following better-than-expected third-quarter earnings.