ABB CEO: Data Center Growth Unfazed by DeepSeek's Low-Cost AI

ABB CEO Morten Wierod has expressed confidence in the company's data center business, despite the emergence of low-cost AI models from Chinese startup DeepSeek. In an interview with Reuters, Wierod stated that ABB's data center-related orders have been growing at a steady pace, with no significant impact from the rise of DeepSeek's energy-efficient AI models.

ABB's data center business has been a significant driver of growth for the company, with orders increasing by an average of 23% per year between 2019 and 2023. In 2024, the growth rate accelerated even further, with data center orders making up 15% of ABB's electrification business. This growth is supported by the increasing demand for data centers, which is projected to reach $685 billion by 2032, growing at a rate of nearly 12% per year (Fortune Business Insights, 2021).

Wierod attributed the resilience of ABB's data center business to the company's focus on energy efficiency and sustainability. ABB's motors and variable speed drives can reduce electricity consumption by up to 60%, while its uninterrupted power supply products run at 97.4% efficiency when converting electricity. These energy-saving solutions help data centers reduce their operating costs and meet their sustainability goals, making ABB an attractive partner for customers seeking to optimize their data center infrastructure.

Moreover, ABB's commitment to investing in AI infrastructure, including the $500 billion private sector investment announced by U.S. President Donald Trump, positions the company well to stay ahead of the curve in AI technology and maintain its competitive edge in the data center market. ABB's expansion into China, a significant market for data centers, also presents new growth opportunities for the company.

ABB's partnerships with large customers and partners have also played a crucial role in the company's success in the data center market. By working closely with its customers, ABB stays informed about market trends and adapts its strategies accordingly. The company's continuous innovation and development of new products and solutions, such as intelligent grid connection, data center power distribution, and prefabricated and integrated data center solutions, further enhance ABB's competitive position in the market.

In conclusion, ABB CEO Morten Wierod's confidence in the company's data center business, despite the rise of DeepSeek's low-cost AI models, is well-founded. ABB's focus on energy efficiency, sustainability, and continuous innovation, combined with its strong partnerships and investment in AI infrastructure, positions the company well to capitalize on the growing demand for data center services and infrastructure. As data centers continue to expand and evolve, ABB's expertise in energy-saving solutions and commitment to sustainability will remain a valuable asset for customers seeking to optimize their data center operations.