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Honeywell’s Building Automation business is benefiting from demand in data centers and other higher-growth facility markets. In the second quarter of 2026, the company reported 13% year-over-year growth in Building Automation orders and 9% organic sales growth. Honeywell cited data centers and hospitality as leading sources of order growth, but it did not disclose how much of the increase came specifically from AI workloads.
How are AI workloads driving Honeywell growth?
AI is part of the context for rising data-center capacity needs, not a separately measured Honeywell revenue driver. Honeywell says data-center operators face pressure to expand computing capacity for high-performance computing and AI workloads. Its results, however, report demand from the data-center vertical rather than breaking out AI-related orders or sales.
In its Q2 2026 results, Honeywell reported that Building Automation orders rose 13% year over year, led by robust growth in data centers and hospitality. Building Automation sales grew 9% organically in the same quarter. Orders and sales are different measures: an increase in orders indicates demand booked during the period, while sales reflect revenue recognized. Neither figure is an AI-specific growth rate.
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What does Honeywell sell to data centers?
Honeywell presents its role as facility automation for data-center operators, rather than consumer AI products. Its stated solution aims include supporting uptime, operating efficiency, emissions goals, and protection of workers, data, and physical assets. These are the intended outcomes of its offering, not independently verified guarantees of facility performance.
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The company describes a lifecycle approach that spans site selection, thermal management, automation, and waste-heat reuse. In practical terms, this frames data-center demand as a broad facilities challenge: operators need systems and services to manage buildings and operations as capacity expands, not only technology associated with computing itself. Honeywell’s data-center page describes the pressure to scale operations for high-performance computing and AI workloads.
How large is data-center demand within Building Automation?
Honeywell’s 2026 Investor Day presentation said data centers, healthcare, and hospitality together represented about 15% of Building Automation sales. That is a combined share; the presentation does not state the data-center-only portion. It also reported 8% organic growth in Building Automation for 2025.
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Honeywell framed the Building Automation industry as approximately $120 billion in size, growing 4%. Those are the company’s market estimates in its Investor Day materials, not an independent market measurement in the cited material. They provide context for Honeywell’s strategy, but should not be confused with the company’s own sales growth or a forecast for its data-center business.
What is Honeywell’s growth strategy?
Honeywell’s stated Building Automation priorities are to focus on higher-growth verticals and regions, innovate products, and generate more value from its installed base through software, AI, and services. The strategy pairs new projects and equipment with ongoing support and digital offerings for existing customers.
Honeywell Forge Connected Buildings is part of that software-and-services approach. The Investor Day materials describe installed-base monetization as a growth lever, but do not provide a revenue breakdown showing how much comes from products and projects, services, or software. The strategy therefore signals the business model Honeywell is pursuing, not a quantified recurring-revenue mix.
What do recent leadership changes tell us?
On August 19, 2026, Honeywell announced that Billal Hammoud would move to lead Process Technology and that Juan Picon would succeed him as President and CEO of Building Automation, with both changes effective October 1, 2026. Honeywell credited Hammoud’s Building Automation leadership with shifting focus toward higher-growth verticals, including data centers, and accelerating Forge adoption. The company also described Picon’s recent leadership as involving that vertical focus. These are Honeywell’s descriptions of its leaders and strategy, not independent evidence that future results will improve.
In the announcement, Honeywell Chairman and CEO Vimal Kapur said Picon “pivoted the business towards higher growth verticals such as healthcare, hospitality and data centers and accelerated the adoption of Forge to deliver strong results.” The statement helps explain how Honeywell characterizes the business’s recent direction; it does not quantify the contribution of any one vertical or product.
What the growth figures do—and do not—show
- Evidence of current demand: Honeywell reported 13% year-over-year Building Automation order growth in Q2 2026 and identified data centers and hospitality as leading contributors.
- Evidence of recognized sales: Building Automation sales increased 9% organically in Q2 2026, while the Investor Day presentation reported 8% organic growth for the full year 2025.
- Not established: The cited figures do not isolate AI-specific revenue, orders, or growth; data-center-only sales share; product-level revenue; or customer-level economics.
- Not a proven outcome: Honeywell’s stated aims around uptime, efficiency, emissions, and protection should not be read as independently validated results or guarantees.
The reported order increase supports a link between data-center demand and Honeywell’s Building Automation growth, but does not establish how much came from AI versus non-AI data-center expansion, hospitality, or other demand. It is not, on its own, a basis for forecasting future growth.
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