This includes utilities, industry, and the rapidly growing data center market. According to the International Energy Agency, electricity's share of final energy consumption is projected to increase from around 20% today to nearly 30% by 2030, highlighting the urgency and scale of expanding the electricity grid.

"This $200 million investment will strengthen ABB's medium-voltage manufacturing and technology capabilities in Europe and support customers as electricity demand increases and the grid evolves," said Morten Wierod, CEO of ABB.

"Demand is driven by major structural trends, from grid modernization and the integration of renewables to the growth of data centers and the transition to more sustainable technologies. These investments will help us expand capacity, improve availability, and shorten delivery times for customers in Europe and beyond, enabling them to adapt to the evolving energy landscape.".

Investing in European industrial capacity: This investment strengthens the company's ability to supply vital medium-voltage switchgear and network automation technologies. It includes a new $100 million plant in Dalmine, Italy, to meet the growing demand for air-insulated and SF₆-free switchgear and disconnectors.

Another $100 million investment is earmarked for capacity expansion projects at factories in Bulgaria (Rakovski), Finland (Vaasa), Germany (Ratingen), Norway (Skien) and Poland (Przasnysz), with the aim of increasing production of technologies such as gas-insulated switchgear (GIS), vacuum circuit breakers and relays, which will enable more reliable and resilient power distribution.

This program complements recent investments in ABB facilities in the UK and Hungary. In Kecskemét, Hungary, the approximately $15 million investment expands R&D and production capabilities in connector technologies, improving the reliability of medium-voltage networks and further expanding ABB's portfolio of grid resilience solutions for customers in the utilities and renewable energy sectors.

In Nottingham (UK), ABB invested around $35 million to expand production of grounding and lightning protection technologies, in order to protect critical infrastructure and buildings, data centers and communications and transport networks from lightning and power surges.