ABB expands power technology partnership with Applied Digital for AI-ready data centers

ABB has expanded its partnership with Applied Digital to enhance power infrastructure at the Polaris Forge 2 AI Factory campus in North Dakota. This collaboration will see ABB supplying innovative medium voltage power technology, crucial for meeting the burgeoning energy demands associated with artificial intelligence (AI)-driven workloads. The second order, part of a long-term commitment, was booked in the fourth quarter of 2025 and emphasizes ABB's role in delivering cutting-edge solutions for large-scale data centers.

The Polaris Forge 2 campus is designed to cater to a 300 MW capacity, gradually being deployed across two buildings that are set to come online in 2026 and 2027. With plans for future expansion, this facility aims to lead the field in energy efficiency, boasting a projected industry-low Power Usage Effectiveness (PUE). As Todd Gale, Chief Development Officer at Applied Digital, stated, this partnership is pivotal for redefining data center capabilities and performance, solidifying their leadership in high-performance AI infrastructure.

The collaboration leverages ABB’s advanced medium voltage architecture, which facilitates improved power density, energy efficiency, and reliability, while also enabling data centers to scale more effectively by utilizing larger power blocks. This shift from low voltage to medium voltage is expected to reduce the complexity of power systems, optimizing operational efficiency and cost-effectiveness.

This partnership aligns with ABB’s commitment to driving sustainable and resource-efficient technological innovations in electrification and automation. With a legacy spanning over 140 years and a workforce of around 110,000, ABB aims to help industries enhance their performance while supporting sustainable practices.

The recent expansion of ABB's partnership with Applied Digital to supply medium voltage power technology for the Polaris Forge 2 AI Factory campus is a significant move that underscores the increasing demand for efficient power infrastructure in the AI sector. This expansion, which will add 300 MW of capacity in North Dakota, reflects a broader trend where data centers are evolving to meet the skyrocketing energy needs of AI workloads.

Investors should view this partnership favorably as it positions ABB as a critical player in the powering of next-gen data centers. The transition to medium voltage systems, particularly through ABB’s HiPerGuard technology, enables higher power densities, energy efficiency, and scalability, which are essential attributes in a sector grappling with rising operational costs. The ability to scale in 25 MW blocks not only enhances reliability but also reduces the complexities of traditional low voltage systems, making this an attractive solution for data center operators.

Moreover, Applied Digital’s commitment to leasing the initial 200 MW of capacity to a U.S.-based Hyperscaler indicates strong demand for this new facility, suggesting robust revenue potential for both Applied Digital and ABB. The projected low Power Usage Effectiveness (PUE) of the Polaris Forge 2 campus further emphasizes its competitive edge in the market, appealing to environmentally conscious customers seeking sustainable solutions.

As ABB continues to innovate and collaborate with leading firms in digital infrastructure, investors should keep a close eye on ABB’s growth trajectory and expanding market share in electrification and automation. The strategic alliance not only bolsters ABB's portfolio but also reinforces its reputation as a leader adept at harnessing cutting-edge technologies to meet evolving consumer needs. In light of these developments, maintaining a long-term bullish outlook on ABB appears prudent.