ABB (ABB) investor relations material

Strategic Overview, Market Trends, and Technology Transition

• Launch of the Infinitus DC portfolio targets the growing demand for direct current (DC) solutions in data centers, aiming to improve scalability, efficiency, and power density for next-generation AI and high-performance computing needs.

• Data center power density is projected to increase 25-fold by 2030, with global capacity expected to triple to 250 GW by 2030, driven by AI workloads pushing rack densities beyond 200 kW in 2026 and trending above 1 MW per rack by 2030.

• DC technology adoption is driven by the inefficiencies of AC-to-DC conversions, rising power densities, and the proliferation of devices and renewables operating natively in DC, with significant energy and operational cost savings expected.

• By 2030, 25%-40% of new data center installations are projected to use DC, especially in AI-focused facilities, with a shift in capital expenditure from white space to gray space infrastructure.

• ABB holds over 700 DC patents and has a significant presence in 1 in 4 data centers worldwide, leveraging decades of DC expertise from marine, rail, and industrial applications.

Portfolio Details, Technical Innovations, and Differentiation

• Infinitus offers a full source-to-rack DC portfolio, including modular building blocks for both hybrid and native DC architectures, supporting rapid and flexible deployment across all geographies and market segments.

• Key components include HiPerGuard medium-voltage UPS, solid-state transformers (SST), and solid-state circuit breakers (SSCB), all designed for scalability, efficiency (98.5%+), and reliability, with SST tailored for high-power data center needs.

• The portfolio supports CapEx spend shift to gray space infrastructure, where ABB has strong exposure, and production is managed within existing capital expenditure levels.

• The company’s approach emphasizes co-design with major customers, rapid supply chain ramp-up, and leveraging proven building blocks from other industries.

• Orders have already been received for medium-voltage UPS and solid-state breakers, with pilot installations underway for SSTs.

Market Adoption, Challenges, and Financial Impact

• Adoption of DC is expected to accelerate from 2028, driven by the need for higher rack power densities and efficiency gains, with full commercial availability of the portfolio by H2 2027 and main building blocks in place by then.

• Regulatory and safety standards are evolving, with active involvement in standardization to facilitate broader adoption.

• The transition may reduce demand for some legacy AC products but is expected to increase revenue per megawatt above the current $2 million average due to higher value-add in gray space infrastructure.

• The portfolio is designed to support both rapid early adopters and more traditional customers, enabling flexible migration paths and minimizing business cannibalization.

• Strategic M&A, such as the acquisition of Advantics, is used to fill technology gaps and strengthen the DC offering.