ABB expects continued demand for its electrification products from data centers, despite concerns over lower-energy AI models like China’s DeepSeek.

DeepSeek’s rise sparked a tech stock selloff, but ABB CEO Morten Wierod stated that major customers are not altering their capital expenditure plans.

The data center market is projected to grow nearly 12% annually, reaching US$685 billion by 2032, benefiting ABB’s business.

Orders for ABB’s data center-related products grew 23% annually from 2019-2023, accelerating in 2024 to 15% of its electrification segment.