Electrical systems manufacturer ABB has announced a $200 million investment package to expand medium-voltage manufacturing capabilities across Europe over the next three years to strengthen supply infrastructure for utility, industrial, and data center customers.

“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, ABB’s CEO. “Demand is being driven by major structural trends, from grid modernization and the integration of renewables to data center growth and the transition to more sustainable technologies. These investments will help us expand capacity, improve availability, and shorten lead times for customers in Europe and beyond, empowering them to adapt to the changing energy landscape.”

The investment package includes a new $100m facility in Dalmine, Italy, to support growing demand for air-insulated and SF6-free switchgear and breakers.

In addition, ABB has earmarked a further $100m for capacity expansion projects across its factories in Bulgaria (Rakovski), Finland (Vaasa), Germany (Ratingen), Norway (Skien), and Poland (Przasnysz). The expansions will support the scaling of production of technologies, including gas-insulated switchgear (GIS), vacuum interrupters, and relays, which the company claims will enable more reliable and resilient power distribution.

ABB, which employs around 110,000 people globally and is listed in Zurich and Stockholm, has made a series of acquisitions in recent years to expand its electrification and services portfolio, particularly in the data center market.

In February, the firm acquired Irish electrical engineering consultancy Premium Power to expand its advisory capabilities within the data center market.

Before this, the company acquired IPEC, a UK specialist in electrical diagnostics. In the same month, it acquired a minority stake in OctaiPipe, a UK-based AI firm focused on optimizing data center cooling systems.