Kitron's €44M Deal to Power the Surging US Data Center Market

OSLO, NORWAY – December 18, 2025 – Scandinavian electronics manufacturer Kitron ASA today announced it has secured a landmark EUR 44 million order to supply advanced electronic components for energy storage and grid balancing systems. The deal is a direct consequence of the voracious energy appetite of the world's rapidly expanding data centers, a sector supercharged by the global artificial intelligence boom.

This significant contract, which represents an expansion of business with an existing client, places Kitron at the heart of a critical infrastructure challenge: how to power the digital future reliably and sustainably. The components will be integral to systems that manage power flow, store energy, and ensure grid stability for data centers, which are becoming foundational pillars of the modern economy.

"The order is closely linked to increasing demand from the fast-growing data center segment, where large-scale electrification, resilience, and power-balancing capabilities have become critical," the company stated in its official press release. Deliveries are scheduled to begin in 2026, marking a pivotal moment in the build-out of next-generation digital infrastructure.

The Unseen Engine of the AI Revolution

The rise of generative AI and large-scale cloud computing has triggered an unprecedented construction boom in the data center industry. However, this growth comes with an immense electrical cost. Industry reports highlight the escalating power demands, with the global data center power market, valued at over USD 20 billion in 2024, projected to surge past USD 42 billion by 2030, growing at a compound annual growth rate (CAGR) of over 13%.

This insatiable demand for electricity is creating significant strain on existing power grids and pushing data center operators to invest heavily in sophisticated energy management solutions. The components Kitron will produce are essential for these systems, particularly Battery Energy Storage Systems (BESS). BESS allows data centers to store power—often from renewable sources—and deploy it during peak demand or grid outages, ensuring the uninterrupted operation critical for cloud services and AI processing.

North America, and the United States in particular, is the epicenter of this expansion, accounting for nearly 40% of the global data center energy market. The components supplied by Kitron are not just commodities; they are high-reliability, complex electronics designed to operate flawlessly in mission-critical environments. This order underscores the crucial, often unseen, role that specialized manufacturers play in enabling the AI revolution. While hyperscale companies like Amazon, Google, and Microsoft build the massive facilities, it is companies like Kitron that provide the intricate technological backbone required to keep them running.

Made in America: Securing the Digital Supply Chain

Significantly, the entirety of the production for this EUR 44 million order will take place at Kitron’s facility in the United States. This decision aligns with a broader geopolitical and economic trend towards nearshoring and strengthening domestic supply chains for critical infrastructure. The vulnerabilities exposed in global supply chains in recent years have accelerated efforts to localize manufacturing of essential technological components, and this deal is a prime example of that strategy in action.

Kitron's American operations are based in Johnstown, Pennsylvania, a facility it significantly expanded in 2019. The plant specializes in complex Printed Circuit Board Assembly (PCBA), system integration, and advanced testing for low-to-mid volume, high-complexity products across sectors like Defence, Medical Devices, and Electrification. The company's press release highlighted that this proximity to emerging data center clusters was a key factor.

Major technology firms are pouring billions into new data center campuses across the US, particularly in the Midwest, drawn by favorable economics and land availability. By manufacturing these critical power components domestically, Kitron offers its clients reduced time-to-market, enhanced collaboration, and a more resilient supply chain, insulating them from potential international shipping delays and geopolitical friction. The move also signals a commitment to the North American market, which continues to dominate global data center investment.

A Strategy of Specialization and Growth

For Kitron, this order is more than a significant revenue injection; it is a powerful validation of its strategic focus on high-growth, high-complexity sectors. The company has methodically positioned itself as a key partner in the global electrification trend, and the data center segment is proving to be a particularly lucrative niche. This deal is believed to be an expansion with a US-based electrification customer that Kitron began scaling up production for in 2024, demonstrating a successful and deepening partnership.

This strategic positioning is reflected in the company's robust financial performance. Throughout 2025, Kitron has consistently reported strong growth, repeatedly raising its full-year revenue and profit outlook. In its third-quarter report, the company announced a 15.6% year-over-year revenue increase and a 31% jump in its order backlog to nearly EUR 600 million, signaling sustained demand.

Analysts have taken note, with a consensus "Buy" rating on the company's stock and upward revisions to sales forecasts. The company has set ambitious medium-term goals, aiming to reach EUR 1.5 billion in revenue with an EBIT margin above 9%. This latest order directly contributes to that trajectory and reinforces the Electrification sector as a primary engine of Kitron's future growth.

As stated by President and CEO Peter Nilsson, the order “underlines Kitron’s role as a trusted supplier of complex, high-reliability electronics supporting the global shift toward more energy-intensive digital infrastructure.” As data centers continue to evolve into the powerhouses of the 21st-century economy, the demand for the sophisticated energy solutions that Kitron provides is only set to accelerate.