The boss of Volex has said the firm has taken a “conservative” approach to the growth of its data centre arm after a surge in capex spend among the AI hyperscalers sent its revenue soaring.

The Hampshire based connectivity products business, which supplies key components used in data centres, posted a 14.4 per cent rise in revenue to just under £1bn for the year to the end of March, led by a more than 50 per cent jump in turnover from its Complex Industrial Technology unit, which includes work on data centres used in AI.

But in an interview with City AM, boss Nat Rothschild, of the Rothschild financier family dynasty, said despite the huge growth the company would be looking elsewhere for areas of faster growth over the coming year, with data centre-based revenue only forecast to grow a further five per cent.

“What gets me excited about the business is actually the non-data centre business,” Rothschild said. “What’s interesting about Volex as a business and as an investor today is the diversity.

‘Not a one trick pony’

“We’ve been incredibly conservative on the data centre side of the business and there’s a real opportunity to exceed that [five per cent] but we are absolutely not hanging our hat on data centres that will take us to $2bn [turnover], quite the opposite.

“We’re absolutely not a one trick pony and whatever happens with data centres and AI Volex will continue to go from strength to strength.”

The remarks come as investors mull over whether spending on data centres is about to peak as the world’s biggest tech companies pour hundreds of billions into AI-related capex.

Total capex spend by Meta, Google, Microsoft and Amazon is expected to reach $750bn (£560bn) this year alone, with the firms scrambling to raise extra cash to plug the spend amid dwindling free cash flows.

Alphabet, Google’s parent company, has raised $85bn on its own in debt over the past year. It plans to raise another $80bn in equity over the coming months – an unprecedented fundraise and one that will be hard to match in the years ahead.

Volex shares closed down 1.2 per cent to 575p on Thursday. The stock, which is due to drop AIM in favour of London’s main market next month, is up by 39 per cent since the start of the year.