ABB CEO 'very confident' of demand for data centers powering AI

Core Viewpoint - ABB is optimistic about future demand from data centers driven by artificial intelligence, expecting significant growth in orders for electrification products [1][2]. Group 1: Demand and Growth - Over the next five years, ABB's CEO expresses strong confidence in demand from data centers, indicating that the sector is not experiencing a bubble but facing construction capacity constraints [2]. - ABB has observed double-digit percentage growth in orders for electrification products this year, attributed to the increasing demand from data centers [1][2]. - The data center business contributed approximately 7% to ABB's revenue this year, an increase from 6% in 2024 [3]. Group 2: Investment and Partnerships - ABB is involved in a partnership with Nvidia to develop electrification products for next-generation chips used in data centers, which is viewed as a long-term investment [4]. - The CEO highlights that the anticipated investments in data centers amount to trillions, which will take years to implement due to a shortage of personnel and resources [2]. Group 3: Opportunities in Upgrades - There are significant opportunities for retrofitting and upgrading older, smaller data centers, which require enhanced power and equipment [5].