ABB is investing $200 million to expand medium-voltage equipment production, capitalising on surging electricity demand from AI data centres, EVs, and industrial electrification.
ABB has unveiled a $200 million investment plan to expand production of medium-voltage grid equipment across Europe, responding to rising electricity demand driven by digital infrastructure, transport electrification, and industrial transformation.
The three-year programme focuses on strengthening manufacturing capacity for medium-voltage distribution equipment, a critical component used by power networks to deliver electricity reliably to factories, hospitals, commercial buildings, and large industrial facilities. These systems play a key role in stabilising power grids as electricity consumption accelerates across sectors.
ABB will allocate around $100 million to establish a new manufacturing facility in Dalmine, northern Italy, while the remaining investment will support upgrades and expansion at existing plants in Bulgaria, Finland, Germany, Norway, and Poland. Once completed, the initiative is expected to increase the company’s European production capacity for medium-voltage equipment by between 50% and 300%, depending on the product segment. The expansion is also projected to create approximately 800 new jobs.
According to Adrian Guggisberg, head of ABB’s Distribution Solutions division, utilities and grid operators are significantly increasing infrastructure investments to cope with long-term electrification trends. ABB supplies equipment to several major European utilities, including E.ON and Enedis, which are expanding grid networks to support growing power demand.
The surge in equipment demand reflects structural shifts in energy consumption. Rapid construction of AI-driven data centres, wider adoption of electric vehicles and heat pumps, industrial decarbonisation initiatives, and the reshoring of manufacturing are all placing additional pressure on electricity networks.
Forecasts from the International Energy Agency indicate electricity could account for nearly 30% of global final energy consumption by 2030, up from about 20% today. As electricity demand grows faster than overall energy use, investment in medium-voltage equipment and grid infrastructure is becoming essential to ensure reliability and efficiency.
ABB’s expansion underscores the growing importance of advanced grid equipment in supporting Europe’s electrification and energy transition goals.
