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Honeywell reported that Building Automation orders rose 13% year over year in the second quarter of 2026, led by data-center and hospitality demand, while segment sales grew 9% organically. The results connect Honeywell’s growth to expanding facility needs, including data centers serving AI workloads—but the company has not disclosed how much growth AI itself generated.
How are AI workloads driving Honeywell growth?
AI is part of the demand context, not a separately measured revenue driver in Honeywell’s published figures. Operators are expanding data-center capacity to serve high-performance computing and AI workloads, creating demand for the systems that help run those facilities. Honeywell says data-center operators face pressure to scale for this demand, but its reported results do not separate AI-related projects from other data-center activity.
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In its second-quarter 2026 earnings release, Honeywell reported 13% year-over-year growth in Building Automation orders, led by data centers and hospitality, and 9% organic growth in Building Automation sales. Orders and sales are different measures: the order increase signals incoming demand, while sales reflect business recognized during the quarter. Neither figure quantifies AI-specific growth. Honeywell’s Q2 2026 results
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They are a stated higher-growth vertical, but the available figures do not show data-center-only sales or growth. Honeywell’s 2026 Investor Day presentation says data centers, healthcare, and hospitality combined accounted for about 15% of Building Automation sales. That is a combined share, not the data-center share alone.
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The same presentation reports 8% organic Building Automation growth in 2025. It also frames the Building Automation industry as approximately $120 billion in size with 4% growth; these are Honeywell’s market figures, not an independent market estimate in the cited materials. Honeywell 2026 Investor Day materials
What does Honeywell sell to data centers?
Honeywell positions its offering as facility automation and related services, rather than AI computing products. Its stated aims include supporting uptime, operating efficiency, emissions goals, and the protection of workers, data, and physical assets. These are solution goals described by the company, not independently verified outcome guarantees.
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Its lifecycle framing spans site selection, thermal management, automation, and waste-heat reuse. In practical terms, the growth opportunity is tied to helping facility operators manage complex buildings and infrastructure as they scale. Honeywell’s data-center overview describes this approach and the operator demand context: Honeywell data-center solutions.
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Honeywell’s 2026 Investor Day identifies three broad levers for Building Automation: focus on higher-growth verticals and regions, monetize its installed base through software, AI, and services, and develop products. It also names Honeywell Forge Connected Buildings as part of its software strategy. The investor materials do not provide a revenue split among products, projects, software, or services, so the relative contribution of each cannot be compared from the figures cited.
This strategy matters because data-center demand can support more than new equipment or construction projects: operators also need ongoing facility management and optimization. That is a potential recurring-services and software angle, but the available disclosures do not quantify how much revenue it adds.
What the leadership change says—and does not say
Honeywell announced in August 2026 that Billal Hammoud would move to lead Process Technology and Juan Picon would succeed him as President and CEO of Building Automation, effective October 1, 2026. The company credited Hammoud’s Building Automation leadership with shifting focus toward higher-growth verticals such as data centers and accelerating Forge adoption; it also described Picon’s recent leadership as including that vertical focus. These are Honeywell’s characterizations of its own strategy and leadership, not evidence of future results. Honeywell’s leadership announcement
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the reported growth does not establish
- It does not identify the share of Building Automation sales or orders attributable to data centers alone.
- It does not isolate AI workloads from non-AI data-center expansion, hospitality, or other sources of demand.
- It does not disclose customer-level economics or a detailed revenue mix for products, projects, software, and services.
- It does not independently verify claimed facility outcomes such as uptime, efficiency, emissions reductions, or protection.
The strongest evidence is the reported quarterly order and sales growth. The strategic presentation and company descriptions explain how Honeywell sees the opportunity, but they do not prove that AI alone caused the growth or that the reported order increase will translate into a particular level of future sales.
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