Global electrical giant ABB partners with chip leader NVIDIA Corporation (NVDA.US) to jointly develop the next generation AI data center.

Swiss-based global electrical giant ABB Group will collaborate with NVIDIA Corporation (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 transmission solutions to meet the needs of future AI workloads. It is reported that the related R&D projects will support NVIDIA Corporation's plan to launch an 800VDC power supply architecture, which is suitable for 1 megawatt server cabinets and can transmit power faster and with lower energy consumption. Following the announcement, ABB Group's stock price in Zurich rose by 1.9%. ABB has benefited in recent years from the growth in demand for automation tools and grid investments, both of which are high-margin business areas that CEO Morten Wierod hopes to further strengthen. Around 40% of ABB's electrical R&D work is focused on areas crucial for the next generation of data centers, including electrical architecture, protection devices, DC distribution, and cooling technology. As businesses continue to build data centers to cope with the surge in AI usage, utility companies are facing higher electricity demand. ABB quoted data from the Dell'Oro Group in the statement, stating that global data center electricity demand is expected to increase from 80 gigawatts (GW) in 2024 to around 220 GW by 2030, with capital expenditure expected to exceed $1 trillion.