ABB Chief Executive Officer Morten Wierod has expressed strong confidence in the long-term power demand driven by artificial intelligence (AI) data centers, stating that the company sees sustained growth potential in the sector.

Speaking to Reuters, Wierod said ABB’s electrification orders from data center customers have grown by double digits this year, supported by rapid expansion in AI and cloud computing infrastructure.

“I am very confident about the demand for data centers over the next five years,” Wierod said, adding that he does not see signs of a market bubble. However, he noted that supply chain and construction capacity constraints are limiting the speed at which new projects can be delivered.

He emphasized that global data center investment is now at a multi-trillion-dollar scale, but deployment will take years due to shortages in labor, equipment, and execution capacity.

According to ABB, artificial intelligence is still in an early stage of development, leaving significant room for continued growth in data center infrastructure. In addition to major technology companies, a growing number of new entrants are also investing in the sector.

Data centers currently account for around 7% of ABB’s total revenue, up from 6% in the previous year. The company supplies electrification systems including low- and medium-voltage switchgear and uninterruptible power supply solutions that ensure continuous server operation.

Earlier this week, ABB announced a collaboration with NVIDIA to develop next-generation power infrastructure for advanced AI chips used in data centers. Wierod described the partnership as a long-term strategic investment rather than a short-term initiative, highlighting ABB’s commitment to shaping future technology ecosystems.

While ABB’s data center business is primarily driven by new construction projects, Wierod also pointed to significant opportunities in retrofitting and upgrading existing facilities. Older and smaller data centers, he noted, require both equipment modernization and increased power capacity to meet rising computing demands.

He concluded that the expansion and modernization of data center infrastructure represent a major long-term growth opportunity for the company.