Strong momentum in the data centre segment follows sustained increases over the past few years. Annual data‑centre‑related orders grew by an average of 23 per cent between 2019 and 2023 and accelerated further in 2024, with that business now accounting for around 15 per cent of ABB’s electrification orders.
ABB has also entered a strategic infrastructure partnership with Applied Digital, focused on designing and constructing a 400 MW AI‑first campus in North Dakota. The collaboration centres on ABB’s HiPerGuard medium‑voltage static uninterruptible power supply system, described as a purpose‑built architecture for AI‑scale data centres. HiPerGuard supports modular expansion in 25 MW increments, reduces cabling and component requirements, and delivers improved energy efficiency and reliability compared with traditional low‑voltage systems. Initial equipment orders were placed in late 2024 and early 2025, and design and integration work is already underway. Applied Digital anticipates the Ellendale campus will host CoreWeave under a signed 250 MW lease, with options to extend to 400 MW.
Those developments illustrate ABB’s growing influence in the electrification and automation underpinning AI‑powered data centres. The company’s electrical infrastructure solutions—from UPS systems to smart monitoring and automation technologies—help data centre operators address soaring energy demands, enhance uptime, and reduce carbon intensity. Medium‑voltage platforms also contribute to a more compact electrical footprint and faster deployment.
ABB is supplementing technology innovation with industrial investment. Earlier in the year, the company announced US$120 million in expansion spending across two U. S. factories—US$80 million in Selmer, Tennessee, and US$40 million in Senatobia, Mississippi—to scale up production of low‑voltage electrical equipment for data centres, among other markets. That expansion includes plans to add 50 jobs in Tennessee and 200 in Mississippi. Approximately 75 to 80 per cent of ABB’s U. S. product sales are domestically manufactured, helping insulate the company from tariff impacts.
The broader data centre power infrastructure market is expanding at a notable clip. Valued at around US$33.15 billion in 2024, it is projected to more than double to US$75.24 billion by 2030, growing at a compound annual growth rate of 14.6 per cent. Key players include ABB, along with Schneider Electric, Eaton, Vertiv and others.
Europe’s legacy electrification giants have been re‑energised by the AI‑driven data centre boom. Together, ABB, Schneider Electric, Siemens and Legrand have added over €150 billion in combined market value, supported by their positioning in AI‑related infrastructure. Data centre demand now represents a substantial share of their electrification revenues.
CEO Morten Wierod, speaking at the World Economic Forum in Davos, reaffirmed expectations of continued growth momentum through 2025, with forecasts aligned to ABB’s long‑standing target of 5 to 7 per cent. He also suggested that acquisitions in energy management may be on the horizon.
That expectation is underpinned by strong recent results. In the fourth quarter of 2024, ABB beat profit forecasts, driven by rising demand for electrification products used in AI data centres. Operational EBITA rose 8 per cent to US$1.43 billion, sales reached US$8.59 billion, and operational EBITA margin hit a record 18.1 per cent. Orders in that quarter increased 7 per cent, led by growth in the data centre and utilities segments.
The convergence of technological innovation, industrial expansion and record-setting financial performance positions ABB at the forefront of the evolving infrastructure demands driven by AI-led data centre growth.
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