ABB has announced plans for a joint venture with Mitsubishi Electric, alongside record third-quarter results driven by strong demand across its electrification business. The partnership marks a significant step in strengthening low voltage power distribution capabilities in Japan and the wider Asia-Pacific market. 

With data centre demand continuing to grow, the announcement highlights increasing investment in electrical infrastructure, power distribution technologies and energy-efficient solutions. 

Record orders driven by electrification demand 

ABB reported record orders of US$12.1 billion in Q3 2026, representing a 40% increase year on year. Revenues reached US$9.7 billion, up 14%, reflecting continued demand across its core markets. 

The company's Electrification division led this growth, with orders increasing 70% to US$7.7 billion. Data centres were a major contributor, recording triple-digit order growth as investment in AI infrastructure and high-performance computing continues. 

For the power sector, these results reinforce the growing importance of reliable power distribution systems, transformer technology and efficient energy management. 

As data centres expand, manufacturers, utilities and grid operators face increasing pressure to deliver infrastructure that supports higher power requirements without compromising reliability or efficiency. 

ABB and Mitsubishi Electric strengthen power distribution capabilities 

Alongside its financial results, ABB announced plans to acquire a controlling 51% stake in a joint venture involving Mitsubishi Electric's low voltage power distribution business. 

The agreement also includes ABB taking full ownership of Mitsubishi Electric's related sales operations outside Japan, with total consideration of approximately US$495 million. 

The transaction values the combined businesses at approximately US$890 million. 

The partnership is expected to strengthen ABB's position in Japan's low voltage power distribution market while creating opportunities for expansion across Asia-Pacific. 

By combining manufacturing capabilities, established customer relationships and electrical technologies, the companies aim to support growing demand for power distribution equipment across industrial and commercial applications. 

Advancing energy efficiency in AI data centres 

ABB's latest results also highlight its investment in direct current (DC) power technologies. 

During the quarter, the company introduced its Infinitus DC portfolio, designed to support higher power density and improved energy efficiency in AI data centres. 

The portfolio includes five technology building blocks that can be combined to support different DC power architectures, including a solid-state transformer expected to become commercially available in the second half of 2027. 

These developments reflect a wider shift towards more efficient electrical infrastructure. 

For grid operators, utilities and technology providers, increasing power density creates new challenges around network capacity, power quality and infrastructure reliability. 

Meeting these requirements will depend on closer coordination between data centre developers, equipment manufacturers and the organisations responsible for delivering power to the grid. 

What this means for grid infrastructure and power distribution 

ABB's performance and its planned partnership with Mitsubishi Electric highlight the growing pressure on electricity networks as demand from data centres, industrial electrification and digital infrastructure increases. 

For transmission and distribution system operators, this creates a clear challenge: expanding grid capacity while maintaining reliability and managing equipment availability, connection backlogs and delivery timelines. 

At the same time, advances in DC power distribution and solid-state transformer technology present opportunities to improve energy efficiency and rethink how power is delivered to high-demand facilities. 

The challenge extends beyond technology development. Utilities, manufacturers and infrastructure providers must work together to turn investment into operational capacity, reduce project delays and strengthen supply chain resilience. 

As electricity demand grows, the ability to deliver grid infrastructure efficiently will play a defining role in supporting the next phase of electrification. 

Connecting the industry to accelerate grid delivery 

ABB's latest developments reinforce a critical priority for the power sector: ensuring grid infrastructure can keep pace with rising electricity demand. 

Addressing this challenge requires stronger collaboration between grid operators, utilities, technology providers and the wider electrical manufacturing supply chain. 

Grid Delivery Summit provides a platform for the industry to come together and address the practical challenges of delivering reliable, efficient and resilient power networks. 

From grid capacity constraints and connection delays to equipment availability and infrastructure investment, these are the conversations that will determine how effectively the sector responds to growing demand. 

Connect with the people and expertise shaping the future of grid delivery at Grid Delivery Summit.