Swiss-Swedish industrial conglomerate ABB revealed on March 3, 2025, that it will invest $120 million in two of its US factories, responding to the sustained growth in demand for data centres. This investment is part of ABB’s expansion of its production capabilities for low-voltage products. The company plans to allocate $80 million to its Selmer, Tennessee site to replace the existing facility and increase its production capacity by 50%. The new infrastructure will manufacture electrical equipment for large industrial installations, data centres, as well as residential and office complexes. ABB also plans to create 50 new jobs in Selmer.
The second investment, valued at $40 million, will involve expanding the Senatobia, Mississippi factory. The goal is to double the size of this unit, which will allow for the creation of 200 additional jobs. These projects are part of ABB’s strategy to support its growth in the US market, the company’s largest, which accounts for approximately a quarter of its global sales, generating $9 billion in revenue in 2024.
In its statement, ABB clarified that 75 to 80% of the products sold in the US are locally manufactured, a response to growing concerns over tariffs. This new investment adds to a broader portfolio of investments made in recent years, with over $500 million committed in the country over the past three years, including $100 million for a site in Wisconsin and $40 million for another in New Mexico.
A dynamic market driven by data centre construction
The data centre sector has become a key driver for manufacturers of materials and industrial equipment. Global investments in this field are expected to reach $700 billion by 2028, according to recent estimates. In the US, government initiatives such as the Stargate project launched under the Trump administration foresee massive investments in AI-related infrastructure, creating a favourable environment for the development of critical infrastructure, such as data centres.
ABB’s growth strategy in the US
ABB continues to strengthen its presence in the US with long-term investments in local production sites. This expansion aligns with the company’s strategic priorities, which focus on increasing its production of electrical equipment for high-growth markets such as data centres. The company has also invested in recent infrastructure, with a site opening in Wisconsin last October, and another in New Mexico scheduled for April. These efforts aim to support the company’s future growth in a highly competitive market.
