ABB is investing $200 million across Europe to expand medium-voltage manufacturing capacity and accelerate deployment of next-generation grid technologies as utilities, industries, and data centers ramp up electricity demand.
The Swiss electrification and automation giant said Monday the three-year investment program will increase production of critical power distribution technologies, including SF?-free switchgear, grid automation products, gas-insulated switchgear (GIS), vacuum interrupters, and protection relays.
The largest share of the investment — roughly $100 million — will fund a new manufacturing facility in Dalmine, Italy, focused on air-insulated and SF?-free medium-voltage switchgear and breakers. ABB said the remaining $100 million will support capacity expansion projects at facilities in Bulgaria, Finland, Germany, Norway, and Poland.
The move comes as grid operators worldwide face mounting pressure to modernize aging infrastructure while integrating renewable power generation, electrifying industrial systems, and supporting rapidly expanding data center capacity driven by AI and cloud computing growth.
According to the International Energy Agency, electricity’s share of global final energy consumption is expected to rise from roughly 20% today to nearly 30% by 2030, intensifying the need for grid upgrades and new distribution infrastructure.
ABB CEO Morten Wierod said the investment is designed to improve supply availability and shorten lead times for customers adapting to a changing electricity landscape.
The expansion also reflects growing momentum behind SF?-free technologies. Sulfur hexafluoride, commonly used in electrical switchgear insulation, is a potent greenhouse gas, and utilities across Europe are increasingly seeking alternatives as environmental regulations tighten.
ABB said the new investments build on recent spending initiatives elsewhere in Europe. In Hungary, the company recently committed around $15 million to expand R&D and production capacity for connector technologies supporting medium-voltage network reliability. In the UK, ABB invested approximately $35 million to boost production of earthing and lightning protection technologies used to safeguard critical infrastructure, transportation systems, communications networks, and data centers.
The announcement underscores broader industrial trends reshaping the power sector, as equipment manufacturers race to scale production amid accelerating electrification and energy transition policies across Europe and other major markets.