ABB invests in technology for data center energy efficiency
The investment complements ABB's technology platform to bolster its entry into the $24 billion market for telecommunications and data center power infrastructure
Zurich, May 13, 2011 — ABB purchased a controlling interest in U.S.-based Validus DC Systems, a provider of direct current power infrastructure equipment for energy-intensive data centers.
DC technology is more energy efficient than traditional alternating current technology for electrical distribution. DC systems are also less complex, requiring less space and equipment, resulting in additional savings in real estate and capital expenditure.
The investment in Brookfield, Conn.-based Validus complements ABB's technology platform to bolster its entry into the $24 billion market for telecommunications and data center power infrastructure.
Data centers can use 100 times more electricity than a similar size office building. DC technology can improve their energy efficiency by 10 to 20 percent compared with AC systems by trimming power conversion losses.
It also reduces power equipment, installation, real estate and maintenance costs, resulting in a saving on total facility costs of up to 30 percent.
This is ABB's second recent investment in technology related to data center power infrastructure following the September 2010 investment in Power Assure, a developer of power management and optimization software for data centers.
The investment in Validus DC Systems was made through ABB Technology Ventures, the company's venture capital arm, which invests in strategically interesting early and growth stage companies.
ABB has also made VC investments in companies working in electric vehicle charging infrastructure, smart grid communications, wave power generation, cyber security for utilities and wind farm efficiency.
Both parties agreed not to disclose financial details of the transaction, which includes an option for ABB to fully acquire Validus.