ABB Group announced May 11 it would spend $200 million on its European medium-voltage electrical equipment manufacturing operations over the next three years. In a group statement, the Swiss industrial electronics company said medium-voltage devices are necessary for data centers as well as in grid expansion to keep up with increasing demand for electricity.

The $200 million will go towards a new $100 million factory in Dalmine, Italy, for air-insulated switchgear, with the rest going towards capacity expansions for the company’s factories in Rakovski, Bulgaria; Vaasa, Finland; Ratingen, Germany; Skien, Norway; and Przasnyzsz, Poland. The factories outside of Italy will spend the money to increase production of gas-insulated switchgears, vacuum interrupters and relays.

The May 11 release follows ABB’s announcement earlier this year that it would spend $120 million to expand similar manufacturing operations in the United States. The company said it would spend $80 million to build a new, 320,000 square foot factory in Selmer, Tennessee for electrical distribution equipment, including busway and bus plug product; the other $40 million was slated to double the size of ABB’s Senatobia, Mississippi factory, increase production of low-voltage circuit breakers. At the time, ABB said the money would create 50 new jobs in Selmer and 200 in Senatobia.

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 Chief Executive Officer. “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.”

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