ABB Rides the AI Wave: Data Center Boom Powers U.S. Growth and Innovation
Driven by the global boom in artificial intelligence and data centers, Swiss engineering giant ABB is powering a new wave of industrial innovation in the United States.
With U.S. orders soaring 27% in the third quarter and a landmark partnership with Nvidia, ABB is cementing its role at the heart of the AI revolution — fueling sustainable growth, smarter factories, and advanced electrification worldwide.
Swiss engineering giant ABB is emerging as one of the biggest beneficiaries of the AI-driven data center boom sweeping across the United States, with the company reporting surging orders, expanding revenues, and a wave of new partnerships that cement its position as a leader in industrial automation and electrification.
The rapid expansion of AI infrastructure is transforming global industries — and ABB’s intelligent solutions are proving indispensable in keeping that momentum going.
AI Revolution Sparks Unprecedented Demand
ABB’s third-quarter results highlight a robust and optimistic outlook. The company posted operating earnings before interest, tax, and amortization (EBITA) of $1.74 billion, marking a 12% increase from the previous year and slightly above analysts’ forecasts.
Revenue climbed by 11% to $9.08 billion, while total orders rose by 12%, signaling strong and sustained customer confidence.
The standout performance came from the U.S. market, where new orders jumped by an impressive 27%, largely driven by the surge in data centers being built to handle artificial intelligence workloads.
These facilities, which power machine learning models and cloud-based systems, require reliable and energy-efficient electrical infrastructure — an area where ABB’s advanced technologies are setting new standards.
Chief Executive Morten Wierod emphasized that this growth is not merely a reaction to short-term factors but part of a deeper industrial transformation. “It’s the normal standard business where there is strong demand,” he said.
“The build-out of data centers is one key driver, but so is the wider electrification trend across industries and utilities.”
Data Centers: The Heart of ABB’s Growth
ABB now generates around 7% of its total group revenues from data centers, up from 6% a year earlier — a figure expected to climb steadily in the coming quarters.
The company supplies critical electrification components, such as uninterruptible power supplies (UPS) and energy management systems, ensuring that server rooms and cloud infrastructures remain operational 24/7.
As global data consumption grows exponentially and AI systems demand vast computational resources, the need for uninterrupted, efficient power has become a top priority.
ABB’s electrification and automation solutions provide the backbone for these new-age facilities, enabling greater energy efficiency, sustainability, and operational safety.
Earlier this week, ABB announced a strategic partnership with semiconductor leader Nvidia to develop next-generation AI-enabled data centers.
This collaboration will leverage ABB’s expertise in industrial automation and Nvidia’s computing power to create smarter, more energy-efficient facilities designed for the digital era.
Innovation and Resilience Amid Global Challenges
Despite recent challenges in global trade, ABB has demonstrated remarkable resilience. According to Chief Financial Officer Timo Ihamuotila, the impact of U.S. import tariffs has been minimal, limited to “the tens of millions of dollars” in operating profit.
The company has successfully offset these costs through small price adjustments and efficiency improvements, proving its adaptability in a volatile global environment.
Furthermore, ABB’s strong local manufacturing strategy has played a crucial role in its stability. Currently, about 75–80% of the products ABB sells in the U.S. are produced domestically, and the company aims to raise that figure to 90% through continued investment in American factories.
This approach not only reduces supply chain risks but also supports local job creation and aligns with the U.S. government’s emphasis on industrial self-reliance.
Powering the Future of Industry
Beyond the AI boom, ABB’s technologies are driving progress in multiple sectors — from renewable energy and transportation to construction and mining.
The company’s focus on electrification and automation aligns with global sustainability goals, helping industries reduce emissions, cut energy costs, and transition toward cleaner operations.
Wierod noted that the AI and electrification revolutions are interconnected, both requiring a robust and intelligent power infrastructure
. “The demand from data centers is enormous, but it also creates opportunities for the power generation and utility sectors,” he explained
“We are seeing a broader industrial transformation that goes beyond technology — it’s about building smarter, greener, and more resilient systems.”
Positive Market Response
Investors have responded favorably to ABB’s performance, with shares rising 2.5% in early trading following the announcement of the third-quarter results.
Analysts view ABB’s strong order pipeline, innovation-driven partnerships, and expanding U.S. footprint as key growth catalysts for the years ahead.
As the AI revolution reshapes economies and industries, ABB stands at the forefront — not just as a supplier of advanced robotics and automation tools, but as a strategic enabler of the digital infrastructure powering the future.
With its focus on innovation, sustainability, and resilience, ABB is well-positioned to continue its upward trajectory, delivering both technological progress and lasting economic value.
In a world increasingly run on data, ABB is proving that the power behind the digital future is not just artificial intelligence — it’s intelligent engineering.
