ABB Surpasses $10 Billion Quarterly Orders for the First Time, Driven by AI Data Center Demand
Time:2026-04-17 Browse: 0
Industrial automation and electrification leader ABB has reported quarterly orders exceeding the $10 billion mark for the first time in its history, driven largely by strong demand from AI data centers and infrastructure electrification projects.
Record-Breaking Q4 Performance
On January 29, ABB released its fourth-quarter and full-year 2025 results.
In Q4 2025:
Orders reached $10.316 billion, up 36% year-on-year
Operational EBITA rose 19% to $1.588 billion
EBITA margin improved by 1 percentage point to 17.6%
For the full year 2025:
Orders increased 17% to $36.765 billion
Operational EBITA grew 13% to $6.314 billion
EBITA margin expanded to 19%
Following the earnings release, ABB shares surged as much as 9% intraday.
Electrification Drives Growth, Data Centers Lead Demand
ABB’s performance was broadly supported across its three core business areas:
Electrification
Motion
Process Automation
Among these, electrification-related demand from data centers, shipping, ports, utilities, tunnels, and airports emerged as the primary growth driver.
Electrification Segment Highlights
In Q4:
Revenue increased 26% to $4.702 billion
Operating EBITA rose 23% to $1.062 billion
Orders grew 36% to $5.323 billion
A significant portion of growth came from large-scale data center projects, including multiple orders exceeding $100 million, contributing approximately $600 million incremental growth.
ABB CEO Morten Wierod highlighted expanded cooperation with data center operators such as Applied Digital, emphasizing ABB’s strategic positioning in next-generation digital infrastructure.
AI Data Centers Become a Core Growth Engine
AI infrastructure is emerging as a key structural driver for ABB’s electrification business.
In 2025, ABB announced collaboration with NVIDIA to support next-generation data center architectures, including 800V direct current (DC) power systems for gigawatt-scale AI facilities.
ABB’s data center portfolio includes:
Intelligent power distribution systems
Backup power solutions
Digital monitoring platforms
Energy optimization technologies
Approximately 40% of ABB’s R&D investment in electrification is now directed toward future data center technologies, including:
Electrical architecture design
Protection systems
DC distribution
Advanced cooling technologies
Expanding Data Center Partnerships
ABB has recently strengthened its presence in AI infrastructure through multiple agreements:
Orders from AI infrastructure developer VoltaGrid for U.S.-based projects
Expanded cooperation with Applied Digital for a second AI campus in North Dakota
Continued deployment of power infrastructure solutions for hyperscale AI facilities
Industry forecasts (ABI Research) suggest:
Over 8,400 data centers globally by 2030
Data center power equipment market nearly doubling from 2025 to 2030
HVDC systems expected to grow at over 100% CAGR
Automation and Motion: Broad-Based Industrial Recovery
Beyond electrification, ABB also reported strong performance in its other divisions.
Automation Segment
Revenue +14%
EBITA +27%
Orders +49% to $2.817 billion
Growth driven by maritime and port infrastructure projects
Motion Segment
Record quarterly revenue of $2.26 billion
+11% year-on-year growth
Supported by rail transport demand and low-voltage motor and drive recovery
Strategic Portfolio Restructuring: Robotics Divestment
In October 2025, ABB announced the sale of its robotics division to SoftBank Group for $5.375 billion, abandoning its previous spin-off IPO plan.
The company stated that robotics had limited synergies with other divisions and faced distinct market dynamics.
Following the transaction:
Robotics will be classified as discontinued operations
ABB’s remaining machine automation business (B&R) will be integrated into Process Automation
The deal is expected to close in mid-to-late 2026, subject to regulatory approvals.
Expanding AI Infrastructure Investments
ABB is actively strengthening its AI and data center capabilities through acquisitions and venture investments:
Investment in UK-based AI software company OctaiPipe, focused on data center cooling optimization
Acquisition of IPEC, enhancing predictive maintenance capabilities across critical infrastructure sectors
Planned acquisition of Netcontrol, targeting grid digitalization solutions
These moves aim to reduce downtime by up to 90% and maintenance costs by up to 85% in industrial and infrastructure applications.
Market Outlook
Industry analysts expect rapid expansion in AI-driven power infrastructure demand.
According to Roland Berger, global data center power equipment market size is projected to grow from approximately:
$247 billion (2025)
tonearly $500 billion (2030)
with a compound annual growth rate (CAGR) of around 9.1%.
High-voltage DC (HVDC) systems are expected to be the fastest-growing segment, driven by AI compute density and energy efficiency requirements.
Conclusion
ABB’s record quarterly performance highlights a structural shift in industrial demand, where AI data centers and electrification infrastructure are becoming primary growth engines.
The company’s strategic focus on:
power systems
grid integration
DC architecture
and digital infrastructure
positions it strongly within the rapidly expanding global AI infrastructure ecosystem.
