Pranav Hotkar
Zurich, Switzerland - May 11, 2026 - ABB is expanding its grid infrastructure and electrification investments across Europe as rising AI data center demand places increasing pressure on power distribution networks and medium-voltage systems.
The company announced plans to invest approximately USD 200 million over the next three years to increase production capacity for medium-voltage equipment, including the construction of a new manufacturing facility in Dalmine, Italy, alongside upgrades at existing operations in Bulgaria, Finland, Germany, Norway, and Poland.
ABB said the expansion is intended to address rapidly growing electricity demand driven by AI infrastructure, data centers, industrial electrification, electric vehicle adoption, and broader grid modernization initiatives. The company expects production capacity for certain medium-voltage product lines to increase between 50% and 300%, depending on equipment type.
The investment reflects a broader shift occurring across the data center industry, where power delivery and grid connectivity are becoming major constraints for hyperscale and AI-focused developments. Operators are increasingly requiring higher-capacity electrical infrastructure to support high-density GPU deployments and liquid-cooled AI environments.
Adrian Guggisberg, President of ABB’s Distribution Solutions Division, said demand for electrification infrastructure is being driven by long-term structural changes rather than short-term market cycles. He noted that AI data centers, industrial reshoring, electric vehicles, and heat pumps are all contributing to sustained increases in electricity consumption across Europe.
The new Dalmine facility will focus on manufacturing medium-voltage switchgear systems used in utilities, industrial facilities, hospitals, commercial buildings, and large-scale digital infrastructure projects. ABB said the investment program is expected to create approximately 800 jobs across Europe.
ABB has been increasingly positioning itself within the AI data center ecosystem through electrification and automation technologies. The company previously announced a collaboration with NVIDIA to support the rollout of 800V DC power architectures for future gigawatt-scale AI data centers and megawatt-class server racks. That initiative is designed to improve energy efficiency and simplify power distribution for next-generation AI facilities.
According to the International Energy Agency, electricity is expected to account for nearly 30% of final global energy consumption by 2030, up from around 20% today, with data centers emerging as one of the fastest-growing drivers of new power demand.
The latest investment underscores how electrical equipment manufacturers are becoming increasingly central to AI infrastructure expansion strategies. As hyperscale operators race to secure power capacity for AI deployments, companies such as ABB are scaling grid technologies and medium-voltage systems needed to support the next generation of digital infrastructure.
