Bernstein Research has maintained its neutral rating on ABB Ltd with a price target of 80 Swiss francs, highlighting modularization as a critical factor in accelerating the company’s expansion into KI-driven data centers. The analysis underscores that energy availability, rather than construction delays, will become the primary constraint in scaling these facilities. While Schneider Electric, Vertiv, and Eaton are positioned to benefit most from this trend, ABB and Siemens face greater adaptation challenges to meet rising demand for high-efficiency infrastructure.
The energy crisis in KI-driven computing has intensified, as new data centers now require multiple gigawatts of power—far exceeding the capacity of a single nuclear reactor. This surge has triggered a global race for available power capacity, with hyperscale firms securing long-term energy contracts ahead of capacity expansions. Meanwhile, geopolitical tensions, including the Iran conflict and Strait of Hormuz risks, further strain energy supply chains.
For energy providers and their supply chain partners, this scenario presents an opportunity. Rising demand, long-term supply agreements, and escalating electricity prices create favorable conditions for companies poised to capitalize on the KI-driven energy boom. Bernstein’s report singles out five underrated stocks—including ABB—as potential beneficiaries of this evolving market dynamic.
ABB’s focus on modularizing KI infrastructure could help mitigate energy-related bottlenecks, though the company’s broader strategy will determine its success in competing with more specialized players in this sector.
