In the heart of the artificial intelligence revolution, industrial giant ABB Ltd. is positioning itself as a key player in powering the data center boom. During a recent appearance on CNBC’s ‘Closing Bell Overtime,’ ABB CEO Morten Wierod emphatically stated, ‘We’re not seeing any slowdown of AI spend at the moment.’ This sentiment echoes amid growing market anxieties about capital expenditures in AI infrastructure, as companies race to build out massive computing capacities.

The interview, available on YouTube via CNBC Television, highlights ABB’s frontline view of the AI buildout. Wierod noted strong activity in the data center segment, particularly in the United States, with no signs of deceleration. He emphasized preparations for the next two to three years, including collaborations with tech giants like Nvidia on new data center architectures.

The Electrification Megatrend Takes Center Stage

Beyond AI, Wierod pointed to a broader shift: ‘Electricity as energy sources is growing more than double the pace of any other energy source.’ This trend spans buildings, industries, and transportation, positioning ABB favorably across geographies including the Americas, Europe, and Asia. According to a report from the International Energy Agency, AI is driving surging electricity demand from data centers, which could transform the energy sector.

Recent partnerships underscore ABB’s role. For instance, ABB has secured orders from VoltaGrid to deliver synchronous condensers for grid stabilization in AI infrastructure projects, as detailed in a press release on ABB’s news center. These units provide high inertia and support network voltage, crucial for the reliable power needed in expanding data centers.

Data Centers: A High-Growth Niche Amid Broader Opportunities

While data centers represent ABB’s fastest-growing market, Wierod clarified it’s only about 7% of the company’s overall business. ‘All markets are really going electric these days,’ he said, highlighting opportunities in power generation and grid upgrades. Goldman Sachs Research forecasts a 165% increase in data center power demand by 2030, as outlined in their report, aligning with ABB’s growth strategy.

Posts on X (formerly Twitter) reflect similar sentiments, with users like Assaad Razzouk noting that tech giants have committed $800 billion to new data centers in 2025, while electricity prices rise. Another post from StockMarket.News describes the internals of modern AI data centers, naming companies like ABB for power handling.

Portfolio Restructuring for Focused Growth

ABB recently updated its guidance during its Capital Markets Day, restructuring into three business areas: electrification, motion, and automation. Wierod announced the sale of its robotics unit to SoftBank, streamlining the portfolio for long-term ambitions of 5% to 7% growth over the cycle. ‘The best is yet to come for us,’ he asserted, boosting profitability targets from 16% to 19%.

This move comes amid industry shifts. A Pew Research Center analysis indicates data centers accounted for 4% of U.S. electricity use in 2024, expected to double by 2030, per their short read. ABB’s expansions, like its partnership with Applied Digital for AI-ready data centers, as reported by GlobeNewswire, position it to capitalize on this demand.

Navigating Global Economic Uncertainties

When questioned about potential downshifts in data center demand due to global economic factors, Wierod acknowledged the segment’s importance but stressed diversification. ‘We need stronger grids all over the world,’ he said, pointing to outdated infrastructure as a growth avenue. InvestorPlace describes this as ‘history’s largest infrastructure cycle,’ with AI capex potentially topping $1 trillion by 2028, in their article.

X posts amplify power constraints as AI’s ‘Achilles heel,’ with The Kobeissi Letter noting Nvidia’s focus on ‘power-limited data centers.’ Evan Luthra highlighted data centers’ electricity use doubling by 2026, tying into Tesla’s energy growth.

ABB’s Technological Edge in AI Infrastructure

ABB’s innovations include helping operators with digital technologies, as featured in their group story. A recent X post from ABB itself quotes Wierod: ‘We don’t see any slowdown in AI investment. We see a massive trend towards electrification and automation overall,’ linking to the CNBC interview.

Industry reports, such as from GreentechLead, project surging global data center electricity demand by 2025 and 2030, emphasizing the need for efficient power solutions. ABB’s orders from VoltaGrid, covered by Machine Maker, involve 27 synchronous condensers for U.S. facilities.

Geopolitical and Market Dynamics

Wierod’s discussion with India’s Commerce Minister Piyush Goyal, shared on X, underscores opportunities in manufacturing and clean energy. The Bipartisan Policy Center’s explainer notes federal actions to strengthen AI and energy infrastructure, amid data center growth driving energy demand.

Turner & Townsend’s index, via TechMediaWire, warns of strains on power infrastructure from AI buildouts. Beth Kindig’s X post predicts AI data center power demand rising 30x by 2035.

Future Prospects and Industry Implications

As AI adoption accelerates, ABB’s CEO remains optimistic. ‘That is where ABB can be a major helper to make that happen,’ Wierod said regarding industrialization driven by electrification. StartupHub.ai reported Wierod’s CNBC comments, reinforcing no slowdown in AI spending and electrification’s role in industrial growth.

TeckNexus on X highlights AI data center spend overtaking oil exploration, with power as the gating factor. Voltimum UK’s post announces ABB’s tech for AI-ready data centers, reshaping power handling.

Strategic Partnerships Fueling Expansion

ABB’s collaboration with Applied Digital for a second AI data center, as per Machine Maker, involves medium voltage power technology. Yiannis Zourmpanos on X notes hyperscalers’ shift to behind-the-meter power for AI campuses.

With these developments, ABB is not just riding the AI wave but actively shaping the electrified future of industry.