ABB says data centre business booming, Q3 figures in line with forecasts

Zurich, Switzerland - ABB, the Swiss engineering group, reported on Tuesday that its data centre business is experiencing a boom in spending, driven by the growing demand for artificial intelligence. The company disclosed that its operational earnings before interest, tax, and amortisation surged by 24% to $2.03 billion in the three months ending September 30, slightly exceeding analysts' expectations of $2.0 billion.

ABB's revenue also grew by 14% to $9.70 billion, marginally lower than the forecasted $9.74 billion. The Swiss firm, which specializes in electrification and automation products for industries such as factories, shipping, and ports, has seen robust demand for products like power distribution and cooling systems essential for data centres.

A recent report from the International Monetary Fund (IMF) highlighted that the surge in spending on AI and data centres is bolstering the global economy, aiding its resilience against the energy crisis caused by the Middle East war. However, the IMF also cautioned that reassessing efficiency gains from adopting this technology could potentially dampen future investments.

During the third quarter, ABB reported a triple-digit increase in orders for data centre products, mirroring the upward trend observed in the previous quarter.