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We see multiple drivers for rising electricity demand:
Electricity is becoming the future key power source, and we need electricity expansion, efficiency, and transition to meet rising power demand, reduce pollution, and support a sustainable future.
Data center demand is expected to grow at a double-digit rate in the mid-term, with power capacity potentially reaching over 200 GW, almost four times the current capacity.
AI-driven data centers require significantly more power, leading to even higher demand for medium-voltage solutions. With our legacy in medium-voltage technology we can help shape the architecture of future large-scale data centers. Conventional data centers use low voltage power distribution and UPS systems. Switching to medium voltage for the UPS system and power distribution enables data centers to scale more efficiently, expanding in medium-voltage blocks. With fewer parts and cabling, installation is simpler and reliability is higher. Running operations with higher voltages, lower conversion losses and less heat generation supports greater energy efficiency.
As a leader in these solutions, ABB offers a robust portfolio for the data center market, addressing customer challenges regarding growing power and direct grid access needs, and mission-critical power access.
This surge in demand is speeding up the move to more energy-efficient and scalable data centers and supports demand for electrical and automation infrastructure in adjacent segments such as metals & mining, utilities and semi-conductors. We benefit from a broad exposure to adjacent industries that will be essential to enable the increasing demand for power and electricity.
Automation enables our customers to improve safety, boost productivity, enhance sustainability and minimize costly downtime in their operations.
In modern process industries, a Distributed Control System (DCS) is a fundamental integrated platform for controlling and monitoring complex, large-scale operations like chemical plants, power generation, and oil refineries.
It decentralizes control by using networked local controllers near the process, which enhances reliability, flexibility, and scalability.
DCS serve as the backbone for digital transformation, enabling the integration of data from sensors and IoT devices for advanced analytics, optimization, and cybersecurity.
Our automation and advanced software applications are designed to unlock greater value from industrial data, enabling predictive maintenance, real-time optimization, and autonomous operations. Solutions like the ABB Ability™ Genix Industrial Analytics and AI Suite integrate data across operational, engineering, and IT systems to deliver actionable insights, improving productivity by up to eight percent, reducing maintenance costs by 15 percent, and extending asset life by 25 percent.
Our Business Areas are positioned to capitalize on key global megatrends that support our long-term growth ambitions. We believe that electricity is the key power source of the future and see three large secular trends – energy expansion, energy efficiency and energy transition. The expansion of the energy system due to the growing demand for electricity and the accelerating energy transition, is driving substantial investment in power generation, including the integration of renewables, grid modernization, energy efficiency, and industrial decarbonization. At the same time, rapid advances in digitalization and AI and evolving supply chains are increasing demand for ABB’s electrification and automation solutions. These trends are directly aligned with our purpose: to enable sustainability and resource efficiency through our customer offerings.