Jan 31 (Reuters) - Eaton Corporation ( ETN ) on Friday

forecast 2025 adjusted profit above Wall Street estimates,

expecting demand for electrical equipment to remain strong due

to an artificial intelligence-related data center boom.

Global appetite for data centers has increased as companies

race to develop and adopt artificial intelligence, benefiting

electrical equipment makers like Eaton.

Shares of the company were up 2.7% in premarket trading.

In the fourth quarter, sales for the electrical business in

the Americas were up 9% while sales in the global electrical

segment rose 4%.

However, the industry's growth could face challenges from

Chinese start-up DeepSeek's new AI model, which is cheaper and

consumes less electricity than OpenAI's ChatGPT, stoking

concerns that newer technologies could have smaller power

requirements, Reuters reported earlier this month.

Excluding items, the Ireland-based company expects 2025

profit between $11.80 and $12.20 per share, with the mid-point

higher than analysts' estimates of $11.95 per share, according

to data compiled by LSEG.

Net sales for quarter ended Dec. 31 were $6.24 billion, up

from $5.97 billion a year earlier. Analysts, on average, were

expecting $6.33 billion.