ABB says data centre business booming, Q3 figures in line with forecasts

By Reuters News

ZURICH, Oct 20 (Reuters) - ABB ABBN.S is continuing to see a boom in spending on data centres used to power artificial intelligence, the engineering group said on Tuesday, as it reported its latest earnings.

The Swiss company said its operational earnings before interest, tax and amortisation jumped 24% to $2.03 billion in the three months to the end of September, slightly ahead of analyst forecasts for $2.0 billion.

Revenue meanwhile rose 14% to $9.70 billion, slightly below forecasts of $9.74 billion in a company gathered consensus.

ABB, which makes electrification and automation products used by factories, ships and ports, has been seeing strong demand for products like power distribution and cooling systems used in data centres.

A surge in spending on AI and data centres is propping up the global economy, helping it withstand the energy shock from the Middle East war, the IMF said last week, although it said a reassessment of efficiency gains from adopting the technology could dent investment.

During the third quarter ABB said it had seen a triple digit increase in orders for data centre products, continuing the trend it saw during the second quarter.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.