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CEO expects demand to remain strong over next 5 years

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Orders for data centre products have grown strongly this

year

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ABB and Nvidia ( NVDA ) working together on next-gen power systems

By John Revill

ZURICH, Oct 16 (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 ( NVDA )

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.