ABB CEO Bullish on AI-Driven Data Center Demand, Announces Nvidia Partnership
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ABB CEO 'very confident' of demand for data centers powering AI
ZURICH, Oct 16 (Reuters) - Switzerland's ABB (ABBN.S), opens new tab is "very confident" about future demand from data centers that power artificial intelligence, its CEO Morten Wierod told Reuters. The engineering company has seen double-digit percentage growth this year in orders for electrification products from data centers being built to meet AI and cloud computing demand. CEO CONFIDENT IN DATA CENTRE DEMAND "Over the next five years I am very confident about demand from data centers," Wierod said on Thursday. "I don't think there is a bubble, but we do see do see some constraints in terms of construction capacity not keeping up with all the new investments," he added. "We are talking about trillions in investment," he said, adding: "That will take a few years to implement because there is not enough people and resources to build all this." AI is only in its early stages, leaving room for growth in data center demand, while many newcomers are joining large tech companies in the sector, Wierod said. ABB generated some 7% of its revenue from data center business this year, up from 6% in 2024, selling electrification systems, including medium and low voltage switchgear and uninterruptible power solutions to keep servers online. ABB STRIKES PARTNERSHIP WITH NVIDIA ABB announced a partnership agreement with chip maker Nvidia (NVDA.O), opens new tab earlier this week to develop electrification products for the next generation of chips used in data centers. "That's not for 2025 or 2026, it's more of a long term investment," Wierod said. "It's very important to be part of the future technology developments." While the majority of ABB's business is for new-build sites, Wierod also saw opportunities in retro-fitting and upgrading. "For some of the older, smaller size data centres, you will need to upgrade the racks with equipment, and you also need to have more power coming in," he said. "That is a big opportunity," he added. Reporting by John Revill; Editing by Alexander Smith Our Standards: The Thomson Reuters Trust Principles., opens new tab
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ABB CEO 'very confident' of demand for data centers powering AI
The engineering company has seen double-digit percentage growth this year in orders for electrification products from data centers being built to meet AI and cloud computing demand. Switzerland's ABB is "very confident" about future demand from data centers that power artificial intelligence, its CEO Morten Wierod told Reuters. The engineering company has seen double-digit percentage growth this year in orders for electrification products from data centers being built to meet AI and cloud computing demand. CEO confident in data centre demand "Over the next five years I am very confident about demand from data centers," Wierod said on Thursday. "I don't think there is a bubble, but we do see do see some constraints in terms of construction capacity not keeping up with all the new investments," he added. "We are talking about trillions in investment," he said, adding: "That will take a few years to implement because there is not enough people and resources to build all this." AI is only in its early stages, leaving room for growth in data center demand, while many newcomers are joining large tech companies in the sector, Wierod said. ABB generated some 7% of its revenue from data center business this year, up from 6% in 2024, selling electrification systems, including medium and low voltage switchgear and uninterruptible power solutions to keep servers online. ABB strikes partnership with Nvidia ABB announced a partnership agreement with chip maker Nvidia earlier this week to develop electrification products for the next generation of chips used in data centers. "That's not for 2025 or 2026, it's more of a long term investment," Wierod said. "It's very important to be part of the future technology developments." While the majority of ABB's business is for new-build sites, Wierod also saw opportunities in retro-fitting and upgrading. "For some of the older, smaller size data centres, you will need to upgrade the racks with equipment, and you also need to have more power coming in," he said. "That is a big opportunity," he added.
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ABB CEO 'very confident' of demand for data centers powering AI
ZURICH (Reuters) -Switzerland's ABB is "very confident" about future demand from data centers that power artificial intelligence, its CEO Morten Wierod told Reuters. The engineering company has seen double-digit percentage growth this year in orders for electrification products from data centers being built to meet AI and cloud computing demand. CEO CONFIDENT IN DATA CENTRE DEMAND "Over the next five years I am very confident about demand from data centers," Wierod said on Thursday. "I don't think there is a bubble, but we do see do see some constraints in terms of construction capacity not keeping up with all the new investments," he added. "We are talking about trillions in investment," he said, adding: "That will take a few years to implement because there is not enough people and resources to build all this." AI is only in its early stages, leaving room for growth in data center demand, while many newcomers are joining large tech companies in the sector, Wierod said. ABB generated some 7% of its revenue from data center business this year, up from 6% in 2024, selling electrification systems, including medium and low voltage switchgear and uninterruptible power solutions to keep servers online. ABB STRIKES PARTNERSHIP WITH NVIDIA ABB announced a partnership agreement with chip maker Nvidia earlier this week to develop electrification products for the next generation of chips used in data centers. "That's not for 2025 or 2026, it's more of a long term investment," Wierod said. "It's very important to be part of the future technology developments." While the majority of ABB's business is for new-build sites, Wierod also saw opportunities in retro-fitting and upgrading. "For some of the older, smaller size data centres, you will need to upgrade the racks with equipment, and you also need to have more power coming in," he said. (Reporting by John Revill; Editing by Alexander Smith)
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ABB's CEO Morten Wierod expresses strong confidence in future demand for data centers powering AI, citing double-digit growth in orders. The company partners with Nvidia for next-gen chip electrification products.
ABB's Optimistic Outlook on AI-Driven Data Center Demand
ABB, the Swiss engineering giant, is riding the wave of artificial intelligence (AI) expansion with a surge in demand for its data center electrification products. CEO Morten Wierod has expressed strong confidence in the future of this sector, highlighting the company's strategic position in the rapidly evolving AI landscape
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.Double-Digit Growth and Revenue Boost
The company has witnessed impressive double-digit percentage growth in orders for electrification products from data centers this year. These centers are being constructed to meet the burgeoning demand for AI and cloud computing infrastructure. ABB's revenue from the data center business has increased from 6% in 2024 to 7% in 2025, underscoring the sector's growing importance to the company's bottom line
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.Long-Term Confidence and Market Outlook
Wierod's optimism extends over the next five years, with a clear vision of sustained demand from data centers. He dismisses concerns of a potential bubble, instead pointing to constraints in construction capacity as the primary challenge in keeping up with new investments. The CEO estimates that the industry is looking at 'trillions in investment,' which will take several years to implement due to resource and workforce limitations
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Strategic Partnership with Nvidia
In a significant move to solidify its position in the AI infrastructure market, ABB has announced a partnership with chip maker Nvidia. This collaboration aims to develop electrification products for the next generation of chips used in data centers. While Wierod clarifies that this is a long-term investment not expected to bear fruit immediately, he emphasizes the importance of being involved in future technological developments
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.Diverse Opportunities in the Data Center Market
ABB's offerings in the data center space are comprehensive, including medium and low voltage switchgear and uninterruptible power solutions crucial for maintaining server uptime. While the majority of ABB's business focuses on new-build sites, Wierod also sees significant opportunities in retrofitting and upgrading existing data centers. He notes that older, smaller data centers will require equipment upgrades and increased power capacity, presenting another avenue for growth
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