- ABB Backs AI Firm OctaiPipe to Slash Data Center Energy Consumption
ZURICH – Technology company ABB announced a strategic investment on Thursday in OctaiPipe, a UK-based AI software innovator.
The partnership aims to deploy intelligent software to optimize cooling systems in energy-intensive data centers, which could reduce their cooling energy costs by up to 30 percent.
ABB is taking an undisclosed minority stake in OctaiPipe through its venture arm, ABB Motion Ventures. The collaboration seeks to address the surging global demand for data, which has led to a significant increase in the energy footprint of data centers.
Cooling infrastructure is a primary driver of this consumption, accounting for up to 40 percent of a typical facility’s electricity use.
The partnership combines ABB’s global reach with OctaiPipe’s on-premise AI platform. This software uses federated learning and digital twin technology to dynamically adjust cooling systems based on real-time demand, improving efficiency without requiring new hardware.
The move comes as data centers face mounting pressure to enhance sustainability and operational resilience. Data centers accounted for approximately 1.5 percent of the world’s electricity consumption in 2024, and the partnership provides operators with a tool to lower energy demand and meet regulatory challenges.
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