Challenges into progress: A look at electrification in 2025

Challenges into progress: A look at electrification in 2025

Growing demands for electricity and energy resilience were key highlights of 2025. Here's a look at five key challenges and the progress that shaped the year.

1. Scaling Data Center Performance

AI adoption is driving exponential growth in demand for data center capacity – power demand from data centers is projected to nearly triple from 2024 to 2030. AI workloads are expected to account for about 70 percent of this growth.

As a forerunner in the foundational technologies that power data centers – such as DC and solid-state electronics – ABB Electrification has continued to invest in relationships over the long-term and innovate to meet increasing demands for reliability, efficiency and scalability. Key highlights included:

2.  Building Smart, Resilient Grids

The grid is being challenged to do much more than what it was originally designed for: carry more load, endure harsher conditions, and support a cleaner energy future. In the past year, aging infrastructure faced unprecedented stress from extreme weather, while blackouts revealed how we urgently need stronger, more flexible systems. At the same time, the rise of renewables and bidirectional power flows demanded new levels of visibility and control.

At ABB Electrification, we have collaborated with utilities partners across the globe to re-think the grid. From storm-hardened equipment to digitally enabled maintenance, we’re working to make the grid more capable and fit for growing demands. 

3. Advancing decarbonization and clean energy 

Global renewable adoption continued to grow amid challenges with grid integration, supply chain vulnerabilities and financing. ABB Electrification has been collaborating with partners and customers to help support their decarbonization journeys and solve energy transition challenges.

The launch of our Battery Energy Storage Systems-as-a-Service enables customers to add flexible energy storage without upfront capital expenditures and operational barriers.

ABB Electrification also supported the freight industry in going electric with a new charging station in Colton, California. Built by Greenlane Infrastructure, the site features an ABB control system that coordinates electrical loads to use power more effectively and avoid burdening the grid.

center

Within ABB Electrification, teams pushed ahead with their own journeys to cut emissions and waste. In 2025, 10 ABB sites received Zero Waste to Landfill certification, and 17 sites joined the Mission to Zero program (including the Nelamangala, India, facility which reached a 92% reduction in CO2 equivalent since 2019).

4. Improving operations with smart energy solutions

Managing energy use has become more complex with the addition of renewables and battery storage. It has also grown more important as a way to improve efficiency, lower operating costs and maintain comfort.

ABB Electrification has been collaborating and innovating to help industries run leaner and cleaner with AI-powered energy management solutions. On the buildings front, the newly launched ABB Ability™ BuildingPro platform helps accelerate decarbonization and digital transformation in smart and sustainable buildings.

Collaboration has been key in driving progress which is why ABB’s Annual Startup Challenge focused on innovative AI-powered solutions. Five winning startups showed the power of digital from tracking and reducing emissions to enhancing battery performance.

5.  Addressing growing industry and infrastructure demand

To meet rising demand, ABB Electrification invested in expanding manufacturing capacity and R&D. These investments included:

The outlook for 2026: more challenges and more progress as ABB Electrification collaborates with customers, partners and startups to meet the world's need for more power and lower emissions.

Links

Contact us

Downloads

Share this article

Facebook LinkedIn X WhatsApp