Fortinet (NASDAQ: FTNT) executives reported rising demand for AI-related data center security solutions during a J.P. Morgan-hosted software event. CFO Christiane Ohlgart highlighted that companies are exploring the long-term cost benefits of deploying AI within their own data centers, marking a gradual but positive trend rather than a single spike in demand. Approximately one-third of Fortinet’s firewall revenue comes from large firewalls, underscoring the company’s significant role in both data centers and operational technology.
AI data center demand is expanding as enterprises reconsider their cloud infrastructure, driven by the costs associated with running AI applications. Fortinet’s technology is increasingly relevant in this context as customers prioritize low power consumption. The firm is also addressing the growing concerns around data sovereignty and security needs stemming from AI adoption and geopolitical tensions.
Ohlgart stated that Fortinet’s supply chain is resilient, maintaining about two quarters of inventory and improving capacity with new warehouses in Europe. She expressed confidence in ongoing high growth for firewalls, citing both operational technology and AI as areas with significant investment potential. The company plans to enhance production further as demand increases in the upcoming quarters.
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