GXO Logistics CEO Patrick Kelleher said data centers represent a significant and expanding portion of the company's business during a Tuesday interview.
The expansion into data-center logistics highlights a strategic shift for the company as it leverages infrastructure needs for the digital economy. This growth occurs as the firm marks five years [1] since its spinoff from XPO Logistics.
Speaking on CNBC's 'Squawk on the Street' program from the New York Stock Exchange, Kelleher discussed the company's current trajectory and growth opportunities. He said that data centers are a big business and that the sector is growing for GXO [2].
The company has also seen significant movement in its regional performance. North America became the fastest-growing market for GXO in the second quarter, with revenue in that region topping $782 million [3].
Kelleher used the appearance to review the firm's progress since its inception. The logistics provider continues to diversify its service offerings to capture demand in high-growth technology sectors, specifically those requiring specialized supply chain management for data center hardware.
While the company maintains a broad logistics portfolio, the focus on data centers reflects a broader trend of logistics firms integrating more deeply with the physical requirements of cloud computing and artificial intelligence infrastructure.
“Data centers are a big business, and they’re growing for us”
GXO's pivot toward data-center logistics indicates a strategic bet on the physical infrastructure required to support the AI boom. By securing a foothold in the specialized transport and warehousing of server hardware, GXO is diversifying away from traditional retail logistics to align with the capital expenditure trends of major tech firms.
