Swiss engineering company ABB reports strong customer demand, driven by the surge in new data centers in the U.S. for artificial intelligence processing. Despite U.S. import tariffs, ABB’s third quarter results show little impact on customers, with new orders in the U.S. jumping 27%.

ABB sees growing demand for data centers and uninterrupted power, generating 7% of group revenues from data centers. The company provides electrification products, such as uninterruptible power supplies, to keep server rooms online. Data center-related orders increased by a double-digit percentage rate in the third quarter.

ABB’s operating earnings before interest, tax, and amortization (EBITA) rose 12% to $1.74 billion, exceeding analysts’ forecasts. Revenue increased by 11% to $9.08 billion, orders rose by 12%, and the company’s shares rose 2.5% in early trading. Chief Financial Officer Timo Ihamuotila mentioned limited impact from U.S. import tariffs, countered by price increases and efficiency gains.

To mitigate the impact of U.S. import tariffs, ABB aims to increase local production in the U.S. Currently producing 75-80% of products locally, the company plans to reach 90% by investing in U.S. factories. Chief Executive Morten Wierod attributes the 27% jump in new U.S. orders to strong demand, not related to tariffs, indicating a healthy industrial economy.

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