Strong Demand Driven by U.S. Data Center Expansion
Swiss engineering powerhouse ABB has reported a surge in customer demand, primarily fueled by the rapid build-out of data centers across the United States. These facilities, essential for processing artificial intelligence workloads, have become a major growth engine for ABB’s electrification and automation technologies.
Resilient Performance Amid Tariff Environment
Despite the ongoing impact of U.S. import tariffs, ABB stated that its operations have remained largely unaffected. Chief Executive Morten Wierod emphasized that the company’s recent growth is purely market-driven rather than tariff-related. ABB’s strategic focus on local production—manufacturing 75–80% of its U.S. sales domestically—has significantly cushioned it against global trade disruptions.
Electrification and AI Shaping Future Investments
The rising demand for uninterrupted power supplies (UPS) and other electrification products reflects a broader industrial shift. As more industries adopt AI and automation, utilities and power generation sectors are under pressure to upgrade infrastructure. ABB’s expertise in delivering reliable, high-efficiency power solutions positions it at the center of this transformation.
Data Center Segment Accelerates Growth
Data center-related orders rose by double-digit percentages in the third quarter, pushing this segment to contribute around 7% of ABB’s total revenues, up from 6% a year earlier. The company’s recently announced partnership with NVIDIA aims to co-develop next-generation data centers, merging ABB’s automation capabilities with NVIDIA’s advanced computing technologies.
Solid Financial Results and Future Outlook
For Q3, ABB’s operating EBITA climbed 12% to $1.74 billion, slightly above analyst expectations. Revenue increased 11% to $9.08 billion, while total orders grew by 12%. Despite modest impacts from tariffs—estimated in the tens of millions—ABB continues to offset these through price adjustments and efficiency gains. The company plans to raise its U.S. production ratio to 90%, reinforcing its commitment to local manufacturing and supply chain resilience.