AI disruptions won’t slow ABB’s expansion in data centres
Despite recent market concerns over energy-efficient AI models like China’s DeepSeek, ABB remains confident in the continued expansion of data centres.
ABB is optimistic about the growth of the data centre market despite recent concerns over the rise of energy-efficient AI models such as DeepSeek. The Chinese AI system, which requires fewer chips to run, recently triggered a selloff in tech stocks, raising fears that demand for high-power data centre infrastructure could decline. However, ABB CEO Morten Wierod said key customers have confirmed their investment plans remain unchanged.
The company has benefited significantly from the expansion of data centres, with orders in this segment rising by 23% annually between 2019 and 2023. The sector now accounts for 15% of ABB’s electrification business, up from 8% in 2022. While Wierod declined to give a forecast for 2025, he expressed confidence in continued demand, particularly in China.
ABB sees further opportunities in helping data centres reduce energy consumption. Its technology, including motors and power management systems, can improve efficiency by up to 60%. With AI infrastructure investments accelerating, spurred by a $500 billion commitment from the US government, the company believes the sector will remain a key driver of growth in the coming years.