Rolls-Royce profits soar 40% amid booming demand for AI datacentre power

The Guardian World

by Alex Daniel

February 26, 2026

AI-Generated Deep Dive Summary

Rolls-Royce reported a remarkable 40% surge in profits last year, driven by soaring demand for power from AI-powered datacenters. The engineering giant saw underlying profits jump to £3.5bn in 2025, up from £2.5bn the previous year, as part of its ongoing turnaround strategy. This growth has been fueled by the booming need for reliable and efficient energy solutions to support the expanding global datacenter industry. The company’s success comes amid a rapidly growing market for data processing and storage, with AI applications like machine learning and big data analytics demanding significant computational power. Rolls-Royce has positioned itself as a key player in this sector, leveraging its expertise in advanced engineering and energy systems to meet the rising demand. In addition to its financial performance, Rolls-Royce announced plans to return up to £9bn to shareholders over the next three years through share buybacks, marking its largest-ever cash payout to investors. This move underscores the company’s confidence in its turnaround strategy and its ability to generate sustained growth in a competitive market. The significance of this development lies in its broader implications for global industries reliant on AI and data processing. As demand for energy-efficient solutions continues to rise, Rolls-Royce’s focus on innovation and strategic investments in technology will likely solidify its position as a leader in the sector. This shift also highlights the growing importance of energy infrastructure in supporting cutting-edge technologies. By addressing the power needs of datacenters, Rolls-Royce is not only bolstering its own business but also contributing to the advancement of AI-driven applications across various industries. In an era where data processing demands are escalating rapidly, Rolls-Royce’s strategic pivot reflects a broader trend among traditional engineering companies to adapt and innovate. This transformation underscores the company’s commitment to staying competitive in a fast-evolving landscape while delivering value to its shareholders.

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Originally published on The Guardian World on 2/26/2026