UPS CEO says data‑center logistics could generate $15 billion of annual revenue
UPS chief executive Carol Tomé told investors that the rapid build‑out of AI data centers creates a $15 billion yearly logistics market. She presented the figure during the company’s third‑quarter earnings call and said the opportunity will help offset recent volume losses, including the wind‑down of the Amazon partnership. UPS also noted a 4.2 % decline in package volumes but a 7 % rise in average revenue per package as it pivots to higher‑margin services.
Why it matters
The company expects the data‑center segment to boost future revenue and margins, providing a growth engine after the loss of low‑margin Amazon volume (the company’s earnings call says). Investors will watch how much of the $15 billion addressable market UPS can capture.
Key facts
- 1UPS estimates the logistics opportunities associated with data centers at $15 billion per year. investing.com
- 2The $15 billion figure is described as a market estimate, not booked UPS revenue. tech-insider.org
- 3Global data‑center spending is estimated to reach roughly $1 trillion in 2026. investing.com
- 4UPS reported a 4.2 % drop in package volumes in the quarter. propmodo.com
- 5Average revenue per package rose 7 % in the same quarter. propmodo.com
- 6UPS raised its annual revenue and profit forecasts after better‑than‑expected third‑quarter earnings. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.