'We have to build new power plants' to meet AI demand, says ABB CEO Morten Wierod

Core Insights - The article discusses the significant expansion of energy demand driven by AI and data center buildouts, highlighting OpenAI's $850 billion expansion, which is equivalent to the output of 17 nuclear plants [1] - The energy grid is under stress due to this increased demand, necessitating advancements in automation and electrification to manage energy distribution effectively [4][8] Industry Overview - There has been a notable increase in energy consumption in the U.S. since 2020, with expectations for continued growth over the next 10 to 15 years [3] - The demand for energy is not only increasing but also requires timely delivery, which emphasizes the need for automation in energy management [4] Company Strategy - ABB is heavily investing in the U.S., with a recent announcement of $110 million allocated for new capacity, indicating that the U.S. is the largest recipient of capital for the company [5] - The company employs a "local for local" strategy, producing about 80% of its sales in the U.S. domestically, which helps mitigate the impact of tariffs and trade barriers [6] Infrastructure Development - The construction of large-scale data centers, such as those in North Dakota and Norway, is being facilitated by available energy resources, despite challenges in transmission capacity [7][8] - A single gigawatt data center is comparable to the output of a nuclear power plant, highlighting the scale of energy infrastructure needed to support these developments [9]