Dive Brief:
- Jabil plans to spend $500 million over the next several years to expand its U.S. manufacturing footprint in the Southeast to support surging data center demand.
- The electronics maker is in the final stages of site selection and expects the facility to be operational by mid-2026, CEO and Board Director Michael Dastoor said on an earnings call Tuesday.
- Jabil raised its full-year guidance from $27.3 billion to $29 billion in revenue after seeing massive growth from its intelligent infrastructure segment in the third quarter.
Dive Insight:
The investment is part of a broader strategy to diversify the company’s commercial portfolio and strengthen its position in the U.S. as volatile trade policies pressure customers across industries.
Jabil, a major components supplier to Apple, has 30 sites across the U.S., as well as global operations in Europe and Asia. The company, based in St. Petersburg, Florida, provides design, engineering and manufacturing services and solutions for the healthcare, automotive and consumer electronics markets, according to its website. It has also shifted its strategy to capitalize on growing demand for data centers that support cloud and artificial intelligence technologies.
“Demand for AI hardware is not slowing down. If anything, it’s accelerating,” Dastoor said on the earnings call. “The need for complex server and rack integration, advanced networking and innovative power and cooling solutions is surging.”
Jabil has already seen massive growth from the AI boom. The company generated Q3 revenue of $7.8 billion, up nearly 16% over last year. This was driven by a 51% increase in revenue from its intelligent infrastructure segment, led by demand for cloud and AI-related power, cooling and server rack solutions, CFO Greg Hebard said on the call.
The gains came after Jabil expanded its data center capabilities. Last October, the company acquired Mikros Technologies, a New Hampshire-based liquid cooling and thermal management solutions provider for data centers, energy storage and semiconductor testing.
Jabil plans to build on the Mikros acquisition with its expansion in the Southeast.
“This initiative is a key element of our long-term strategy to diversify our commercial portfolio and strengthen Jabil’s presence in the U.S.,” Dastoor said in a statement. “While the geopolitical landscape remains dynamic, our position as a U.S.-based company with a significant domestic footprint enables us to help the world’s leading brands navigate challenges with agility and resilience.”
