Story perspectives

AI Spending Stalls, Data Center Market Thrives Amid Concerns

11/7/2025

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Summary

Story summary

AI spending in Europe faces headwinds from diminishing returns and local opposition to data centers.
Despite these challenges, Legrand and Schneider Electric benefit by supplying data-center infrastructure.
The data-center infrastructure market grew 18% in the second quarter of 2025, with expectations for continued growth.
General Atlantic warns of irrational exuberance in the sector, signaling a potential market correction.
Legrand and ABB are trading at high enterprise values, raising questions about sustainability.

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Story summary

AI spending in Europe faces headwinds from diminishing returns and local opposition to data centers.
Despite these challenges, Legrand and Schneider Electric benefit by supplying data-center infrastructure.
The data-center infrastructure market grew 18% in the second quarter of 2025, with expectations for continued growth.
General Atlantic warns of irrational exuberance in the sector, signaling a potential market correction.
Legrand and ABB are trading at high enterprise values, raising questions about sustainability.