UPS CEO Puts Data-Center Logistics Opportunity at $15 Billion a Year
UPS chief executive Carol Tomé estimated that data-center logistics could generate $15 billion in annual business, with the market potentially reaching twice that figure.
FlyMarshall Newsroom1 min read
Photo: Air Cargo
UPS chief executive Carol Tomé estimated that logistics work associated with data centers could represent a $15 billion-a-year opportunity. She said the market could potentially be twice that size.
Key details
- UPS’s high-tech small-package business grew 30% year over year in the third quarter, Tomé said, from a small base.
- UPS reported third-quarter revenue of $22.8 billion, up 6.7% year over year.
- UPS’s supply-chain division recorded an 18.2% revenue increase.
- UPS reported operating profit of $1.7 billion, down 3.3%, and net income of $1.2 billion, down 11.3%, year over year.
Carol Tomé estimated a $15 billion annual logistics opportunity tied to data centers.
Why it matters
Data centers require logistics support for technology equipment and related supply chains. Tomé’s estimate points to a potential area of demand for UPS’s high-tech package and supply-chain businesses.
What happens next
UPS’s high-tech small-package business and supply-chain division give the company routes into data-center logistics as that market develops. Which parts of the data-center supply chain could create the most air-cargo demand?
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