ABB and Graco's ETM target first data center cooling installations by end of 2029.
ABB and Graco's ETM unit have signed a license agreement to develop data center cooling solutions using ETM's TFM motor technology. The companies aim for first installations by the end of 2029, targeting the growing demand for efficient, reliable cooling in data centers. ABB will leverage its market reach, while ETM provides its motor technology, with both companies citing the potential for improved energy efficiency and operational reliability.
How this was made
The 30-second read
Why it matters
The partnership creates a new market for direct‑drive motor technology, but revenue is expected only after 2029, limiting immediate trading opportunities.
Market read
While the deal opens a strategic growth avenue, the distant commercialization horizon suggests limited short‑term market impact.
What to watch
Potential competition from other motor manufacturers and the risk of slower data‑center build‑out could temper benefits.
Background
The agreement builds on prior collaboration between ABB and ETM, aiming to capture growth in AI‑driven, high‑density data‑center cooling.
Market effects
Could boost the industrial motor and automation sector as data‑center cooling demand grows.
Primarily impacts North American and European industrial markets where ABB and Graco operate.
Moderate relevance to global data‑center infrastructure investors.
Counterpoint
The long timeline to revenue and limited scale may mean the partnership has minimal near‑term price impact.
Key entities
- CompanyABB
Global leader in electrification and automation.
- CompanyGraco Inc.
Supplier of fluid handling equipment; ETM is its motor technology unit.
