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Businesspublished

Carrier’s Data-Center Orders Rose More Than 300%, Bringing Cooling Into AI Buildouts

The order increase gives the AI infrastructure buildout a concrete thermal-equipment demand marker, though it does not reveal the size of Carrier’s data-center revenue.

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Carrier’s Data-Center Orders Rose More Than 300%, Bringing Cooling Into AI Buildouts
Carrier’s Data-Center Orders Rose More Than 300%, Bringing Cooling Into AI Buildouts
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Carrier Global’s data-center orders rose more than 300% in its latest quarter, giving the AI infrastructure buildout a tangible demand signal beyond chips and electricity. The catch is that this is an order figure, not revenue—and Carrier still has not disclosed how much of its sales come from data centers. The reason the signal matters is straightforward: more powerful data-center systems generate more heat, so operators need increasingly capable cooling equipment. Carrier sells residential HVAC systems, heat pumps, and large commercial cooling systems. CNBC ranks it first in residential HVAC and third in commercial HVAC in the Americas, putting the company close to a broad replacement and construction cycle. But the data-center number is hard to size. Carrier generated $21.7 billion in sales last year, with nearly 30% coming from parts and services. Without a data-center revenue figure, investors cannot determine the segment’s current scale, margins, or backlog from this disclosure alone. The broader company also matters. Americas residential HVAC sales grew 9% in the second quarter after a prolonged inventory correction, while commercial HVAC is benefiting from replacement demand. Carrier acquired European heating company Viessmann and sold its fire-and-security and commercial-refrigeration businesses. It expects about $2 billion in free cash flow this year and returned roughly $640 million through dividends and buybacks in the second quarter. The key question is whether the surge in orders becomes material, recurring data-center revenue—or remains an encouraging but difficult-to-size demand indicator.

Story brief

3 key points

Carrier’s latest quarter delivered a strong AI-infrastructure demand signal: data-center orders increased more than 300%. That is evidence of rising thermal-equipment demand as operators deploy denser, hotter systems, but it is not an operating result, and Carrier did not disclose data-center revenue or indicate whether the growth rate will persist. The company’s broader HVAC business and portfolio changes provide...

  1. 01

    Carrier generated $21.7 billion in sales last year, with nearly 30% from parts and services.

  2. 02

    Data-center revenue remains undisclosed, limiting estimates of AI-related sales, margins, or backlog.

  3. 03

    Carrier expects about $2 billion in free cash flow this year and returned roughly $640 million in Q2.

AI data centers need cooling as well as chips and power. The clearest new evidence is an order figure, not an operating result: CNBC reported that Carrier Global’s data-center orders rose more than 300% in the latest quarter. The increase signals that thermal equipment is part of the AI construction cycle.

Heat becomes an equipment requirement

Data centers produce substantial heat, making cooling more important as operators install more powerful chips. Carrier sells residential HVAC systems, heat pumps and large commercial cooling systems. CNBC ranks it No. 1 in residential HVAC and No. 3 in commercial HVAC in the Americas.

The jump is a current demand indicator, not proof of a lasting data-center growth rate. Carrier did not disclose a data-center revenue total in CNBC’s account, leaving the business’s present sales contribution unclear.

A broader case than data centers

Investor Jenny Harrington recently bought more Carrier shares after the stock fell to around $58. She disclosed that she owns Carrier through Gilman Hill Asset Management and argues that the investment does not depend solely on AI-data-center demand.

The non-data-center demand Harrington cites

  • Residential HVAC sales in the Americas grew 9% in the second quarter after a long inventory correction.
  • Commercial HVAC is benefiting from replacement demand for aging heating and cooling systems.

A reshaped company returns cash

Carrier has reshaped its portfolio by acquiring European heating company Viessmann and selling its fire and security and commercial refrigeration businesses. The company expects about $2 billion in free cash flow this year, which is guidance. It returned about $640 million through dividends and buybacks in the second quarter. Together, those financial measures frame the investor case, while the data-center order figure is the new AI-specific evidence.

Sources

  1. cnbc.comAI data centers need massive amounts of cooling. Jenny Harrington is buying this HVAC stock

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