en.Wedoany.com Reported - ABB plans to invest approximately $200 million in Europe over the next three years to expand its medium-voltage manufacturing capacity, in response to the growing electricity demand from utilities, data centers, and heavy industries.
Morten Wierod, CEO of ABB, stated that this investment will strengthen ABB's medium-voltage manufacturing and technology capabilities in Europe, supporting customers amid rising power demand and grid evolution. He noted that demand is driven by major structural trends, including grid modernization, renewable energy integration, data center growth, and the transition to more sustainable technologies. According to the International Energy Agency (IEA), global electricity demand could grow by 3.5% annually by 2030. This trend may place additional strain on grid infrastructure, which is already operating near full capacity in some regions.
Approximately $100 million of the total investment will be allocated to ABB's manufacturing facility in Dalmine, northern Italy. Most of the funds will support new equipment for producing sulfur hexafluoride (SF₆)-free switchgear and circuit breakers. SF₆ has long been the standard insulating gas in electrical switchgear, but its global warming potential is thousands of times higher than that of carbon dioxide. Regulatory requirements for SF₆ have tightened across Europe, prompting companies to seek alternatives.
The remaining $100 million will be distributed among ABB's facilities in Bulgaria, Finland, Germany, Norway, and Poland. These sites will expand production of gas-insulated switchgear, vacuum interrupters, and protective relays. Wierod explained that these investments will help increase capacity, improve availability, and shorten delivery times for customers in Europe and beyond, enabling them to adapt to the evolving energy landscape. Delivery delays for medium-voltage equipment have been a persistent industry-wide issue, with some customers experiencing longer wait times than anticipated a few years ago.
ABB described this announcement as part of an ongoing plan. The company has already invested approximately $15 million in Kecskemét, Hungary, to support additional R&D and production capacity for connector technology, aimed at improving the reliability of medium-voltage networks. ABB has also committed $35 million in Nottingham, UK, to expand production of grounding and lightning protection systems, safeguarding data centers, communication networks, and transportation infrastructure from power surges and lightning strikes. Combined with the latest announcement, ABB's recent manufacturing commitments in Europe total over $250 million.
In its investment framework, ABB cited data centers as a source of grid pressure. The demand from hyperscale and artificial intelligence facilities adds high-energy consumption loads to grids that were not originally designed for such purposes. For equipment manufacturers like ABB, this presents both supply chain challenges and business opportunities. Whether the $200 million expansion over three years can significantly improve delivery times and availability will largely depend on how quickly the Dalmine facility can become operational and reach full capacity.
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