Swiss-Swedish industrial group ABB has announced a minority investment in British company OctaiPipe, which specialises in energy optimisation software for data centres. The company did not disclose the financial terms of the deal or the size of the stake acquired.
Based in London, OctaiPipe develops a software solution powered by artificial intelligence (AI) designed to reduce energy consumption by up to 30% in data centre cooling systems. These systems, critical for maintaining IT infrastructure, can account for up to 40% of a data centre’s total energy consumption, according to ABB.
A response to the rapid growth of the AI sector
The partnership aims to integrate OctaiPipe’s technology into ABB’s solutions for data centre operators, a market segment expanding rapidly with increased investment in artificial intelligence. ABB already supplies electrical systems to these infrastructures, a business line showing steady growth within its portfolio.
During its third-quarter financial results announcement, ABB Chief Executive Officer Morten Wierod stated that data centres now account for 7% of the group’s revenue, compared with 6% the previous year. This increase underscores the growing importance of this segment within ABB’s overall operations.
An energy market under pressure
ABB reported $9bn in revenue for the third quarter, marking a 9% increase compared to the same period in 2024. Part of this growth is attributed to higher demand for energy-related equipment for data centre installations, where managing power consumption remains a central issue for operators.
ABB also manufactures traction systems for the railway sector, electric vehicle charging stations and various equipment for power generation facilities. This diversification enables the group to position itself across several key segments of industrial energy management.
