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AI-driven data centre boom boosts ABB’s U.S. sales and orders

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Swiss engineering giant ABB reported a strong third quarter as surging investment in data centres across the United States drives demand for its industrial robots, electrification products, and power solutions.

The company said new U.S. orders rose 27% in the third quarter, powered largely by the expansion of data centres needed to process artificial intelligence workloads. “It’s the normal standard business where there is strong demand,” said CEO Morten Wierod, noting the rise was not linked to U.S. import tariffs.

ABB generates about 7% of its revenue from data centres, up from 6% a year ago, and provides uninterruptible power supplies and electrification systems that keep critical servers online. Wierod said the AI boom is also driving broader electrification, forcing utilities and industrial sectors to increase investments.

Earlier this week, ABB announced a partnership with Nvidia to develop advanced infrastructure for next-generation data centres.

The company posted a 12% rise in operating EBITA to $1.74 billion, topping forecasts, while revenue grew 11% to $9.08 billion. Orders also climbed 12%. ABB’s shares initially rose 2.5% after the results before easing later in the session.

Chief Financial Officer Timo Ihamuotila, who will step down next year, said U.S. tariffs have had only a limited impact, costing “tens of millions” of dollars in profit, which the company has offset with price adjustments and efficiency gains. ABB currently manufactures about 75–80% of its U.S. products domestically, with plans to raise that to 90% through new factory investments.

GE Vernova to Sell Proficy to TPG for $600 Million, Refocus on Grid Software

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GE Vernova announced Thursday it will sell its Proficy industrial software unit to private equity firm TPG for $600 million, with plans to reinvest the proceeds into its grid software business.

Proficy, which represents about 20% of GE Vernova’s electrification software revenue, helps manufacturers monitor and optimize production. In 2024, the company’s electrification segment generated $7.55 billion in revenue.

The sale comes as GE Vernova, spun off from General Electric last year, works to manage higher costs tied to tariffs and inflation. The company has projected an additional $300–$400 million in costs for 2025 and is raising prices and streamlining operations to protect margins.

CEO Scott Strazik said at a Morgan Stanley conference that while Proficy is a valuable business, GE Vernova sees more strategic upside in grid-focused technology. “Indirectly, we are going to reinvest the proceeds into the grid software business,” he said.

Deal Details

  • The transaction is expected to close in the first half of 2026.

  • TPG will acquire and control Proficy through TPG Capital, its U.S. and European private equity platform.

  • GE Vernova will retain a board observer seat and could receive additional proceeds depending on future outcomes and conditions.

  • The sale will establish Proficy as a standalone software company under TPG ownership.

Market Context

Analysts said the divestiture reflects GE Vernova’s efforts to monetize undervalued assets while channeling resources into growth areas like grid modernization. RBC Capital Markets analyst Christopher Dendrinos called the move “strategic,” noting the strong demand for manufacturing and electrification investments.

Shares of GE Vernova fell 3.2% to $622.77 after the announcement.

The company is also boosting its supply chain capacity, including a $600 million upgrade to U.S. factories announced in January, to keep pace with rising global electricity demand.

Poor Grid Planning Threatens Europe’s Data Centre Hubs, Ember Report Warns

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Europe’s top data centre locations, including Frankfurt, London, Amsterdam, Paris, and Dublin, risk losing their dominance unless governments improve long-term grid planning, according to a new report released Thursday by energy think-tank Ember.

The surge in demand for data centres, driven by the rise of artificial intelligence (AI) and its energy-intensive computing needs, is shifting investment priorities. Developers are increasingly choosing locations with faster and easier access to electricity, rather than remaining loyal to traditional hubs plagued by long grid connection delays.

The report warns that by 2035, up to 50% of Europe’s data centre capacity could relocate outside the current main hubs. This could divert billions of euros in economic activity to emerging markets, with significant implications for GDP and job creation. For example, data centres in Germany generated €10.4 billion in GDP in 2024 — a figure expected to more than double by 2029. Losing momentum in such a high-growth sector could harm economic prospects in these countries.

While France is likely to retain investment due to a relatively unconstrained grid, others could suffer delays of up to 13 years in connecting new data centres. The average wait time in the legacy hubs is 7–10 years, compared to only 3 years in Italy and even less in some emerging regions.

“Grids are ultimately deciding where investments go,” said Elisabeth Cremona, Senior Energy Analyst at Ember. “If Europe wants to maintain its competitiveness and achieve economic growth, it must prioritise grid development.”

She emphasized that the issue extends beyond data centres to all sectors undergoing electrification. Without updated grid infrastructure, industries could struggle to scale or relocate entirely to regions with faster energy access.

Electricity demand from data centres is projected to triple in Sweden, Norway, and Denmark by 2030, and increase three- to fivefold in Austria, Greece, Finland, Hungary, Italy, Portugal, and Slovakia by 2035.

The findings highlight an urgent need for European policymakers to treat grid planning as a strategic investment tool, not just a utility service, in order to retain tech-sector leadership and support industrial transformation.