ABB invests in OctaiPipe to partner in AI-optimized energy efficiency for data center cooling

ABB has announced a strategic investment via ABB Motion Ventures in OctaiPipe, a UK-based company specializing in AI-powered software for optimizing data center cooling. The partnership aims to provide data center operators with advanced tools to significantly reduce energy consumption, enhance operational reliability, and respond to increasing expectations around sustainability and transparency. As part of the deal, ABB will acquire a minority stake in OctaiPipe, subject to customary closing conditions. Financial terms were not disclosed.

As global demand for data center capacity is forecast to grow by 19–22% annually between 2023 and 2030, energy consumption is rising rapidly, with cooling systems accounting for as much as 40% of a facility’s total electricity use. ABB’s investment supports the deployment of an on-premise AI solution capable of delivering up to 30% energy savings in cooling, offering quick implementation, short payback periods, and no requirement for additional hardware.

In 2024, data centers accounted for around 1.5% of global electricity consumption, with the United States representing the largest share at 45%. Power demand from US data centers alone is expected to contribute to nearly half of the overall growth in electricity consumption through 2030.

“Data centers are the engines of the digital economy, but their energy footprint is unsustainable without radical innovation,” said Eric Topham, CEO and co-founder of OctaiPipe. “Think of our federated learning4 platform as an orchestra conductor, smartly adjusting the performance of the cooling system based on what’s actually needed. In this way, our AI-driven software solution delivers secure, compliant, and actionable optimization. By joining forces with ABB, we’re not just scaling technology. We’re enabling data center operators to future-proof their infrastructure and thrive in a rapidly evolving market.”

“Energy efficiency is key to ensuring industries can outrun, leaner and cleaner. It’s a must, not a plus,” concluded Ankush Gulati, Energy Efficiency Program Lead, ABB Motion Services. “By integrating OctaiPipe’s cutting-edge AI we are broadening our proven offering with advanced software capabilities, enabling data centers to optimize energy use in their cooling infrastructure. With the US economy predicted to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined, the opportunity for impact is significant.”

OctaiPipe’s solution is powered by advanced proprietary AI technologies, including federated AI, multi-agent reinforcement learning, and digital twin modeling, to continuously optimize cooling setpoints while maintaining safety and regulatory compliance. Its privacy-focused, on-premise architecture is tailored for data center operators who want scalable solutions without relying on cloud-based systems. Supported by a robust development roadmap, the partnership provides data centers with multiple options to enhance reliability and improve overall performance.