Global electrical giant ABB collaborates with chip leader NVIDIA to jointly develop the next generation of AI data centers

According to the Zhitong Finance APP, ABB Group, a global electrical giant headquartered in Zurich, Switzerland, will collaborate with NVIDIA (NVDA.US) to jointly develop the next generation of artificial intelligence (AI) data centers. In a statement released on Monday, ABB Group stated that it will focus on developing efficient and scalable power delivery solutions to meet the demands of future AI workloads. It is reported that the related R&D project will support NVIDIA's plan to launch an 800VDC power supply architecture, which is suitable for 1-megawatt server cabinets and can transmit power in a faster and more energy-efficient manner. Following the announcement, ABB Group's stock price in Zurich rose by 1.9%.

In recent years, ABB has benefited from the growing demand for automation tools and grid investments, which are high-margin business areas that CEO Morten Wierod hopes to further strengthen. Approximately 40% of ABB's electrification R&D work focuses on areas critical to next-generation data centers, including electrical architecture, protection devices, DC distribution, and cooling technologies.

As companies rush to build data centers to cope with the surge in AI usage, utility companies are facing higher electricity demand. ABB cited data from the Dell’Oro Group in its statement, indicating that global data center electricity demand is expected to grow from 80 gigawatts (GW) in 2024 to approximately 220 gigawatts (GW) by 2030, with capital expenditures expected to exceed $1 trillion