ABB Navigates Data Center Surge Amid AI Evolution

ABB projects increased demand for its electrification products from the data center market despite the rise of low-energy AI models. While DeepSeek sparked concerns in the tech sector, ABB's CEO Morten Wierod remains optimistic about growth, emphasizing the company's role in reducing energy consumption in data centers.


Devdiscourse News Desk | Updated: 30-01-2025 17:36 IST | Created: 30-01-2025 17:36 IST
ABB Navigates Data Center Surge Amid AI Evolution
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ABB is poised to benefit from increasing demand for its electrification products in the data center market. CEO Morten Wierod expressed optimism regarding the company's growth prospects, despite a recent stir caused by DeepSeek, a lower-energy AI model from China.

DeepSeek overtook OpenAI's ChatGPT on Apple's App Store, leading to a tech stock selloff due to fears it might challenge dominant chipmakers like Nvidia. However, ABB's sales trends remain strong, with orders up 23% annually in recent years, boosted by demand for energy-efficient solutions.

Wierod highlighted ABB's focus on energy reduction and strong market positioning, noting the company's motors and drives can cut electricity usage by up to 60%. With data centers forecasted to grow significantly, ABB is confident about its future, especially with potential in China and broader AI infrastructure investment in the US.

(With inputs from agencies.)

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