ABB Reports Strong Growth as AI Data Centre Spending Surges -

Swiss engineering company ABB has reported strong growth in earnings, driven by a continued surge in spending on data centres supporting artificial intelligence (AI).

The company said its operational earnings before interest, tax, depreciation and amortisation (EBITDA) rose 24% to $2.03 billion in the third quarter ending September, slightly exceeding analysts’ expectations of $2 billion.

Revenue increased 14% to $9.70 billion, marginally below the forecast of $9.74 billion, according to a consensus compiled by the company.

ABB manufactures electrification and automation equipment used across industries, including factories, shipping and ports. The company has benefited from rising demand for power distribution and cooling systems required to operate data centres, which consume significant amounts of electricity and generate substantial heat.

During the third quarter, ABB recorded a triple-digit increase in orders for data centre products, extending the strong growth trend reported in the previous quarter.

The surge in investment in AI and data centre infrastructure is also supporting the global economy amid economic pressures stemming from the conflict in the Middle East, the International Monetary Fund said last week. However, the IMF warned that a reassessment of the productivity gains expected from AI adoption could weaken future investment.

ABB’s latest results highlight the growing importance of data centre infrastructure as companies expand their AI capabilities, creating new opportunities for businesses supplying the electrical, cooling and automation systems needed to support these facilities. – TS/ERMD

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