Computacenter, a 44-year-old British hardware reseller, is set to join the FTSE 100 index this week, bringing unexpected AI excitement to the staid benchmark. The Hertfordshire-based company has seen its stock surge 50 per cent this year as it supplies essential equipment to tech giants building AI infrastructure. Clients include Tesla, Meta Platforms, and Elon Musk's xAI, benefiting from the AI boom despite its traditional business model.

The company's revenue jumped 32% in 2025 to £9.2bn, marking a return to operating profit growth after a previous decline. Under CEO Mike Norris, the longest-serving FTSE 350 chief executive, Computacenter has capitalized on strong demand from hyperscalers for hardware like cooling equipment and cabling needed for massive data center projects. However, its reliance on large contracts creates financial unpredictability and share price volatility.

While hardware sales have thin margins, services—which make up 18% of sales and 30% of gross profit—prove more profitable. AI presents both opportunity and threat to this model, as automation tools could replace consulting services. Computacenter's focus on hardware and public sector clients provides some protection against AI disruption, though its US expansion through recent acquisitions shows ambition beyond traditional strengths.