ABB buys IPEC to boost predictive maintenance tech

ABB has agreed to acquire UK-based electrical diagnostics specialist IPEC in a deal that expands its monitoring and predictive maintenance offering for data centres, utilities and other critical infrastructure operators.

The acquisition will add IPEC's partial discharge monitoring technology to ABB's Electrification Service portfolio. The systems monitor electrical assets continuously and identify early-stage insulation faults that can precede equipment failure and unplanned outages.

The companies expect the transaction to close in the first quarter of 2026. ABB did not disclose financial terms.

IPEC, founded in 1995 and headquartered in Manchester, focuses on early detection of failures in medium- and high-voltage equipment. Its monitoring platforms track electrical infrastructure around the clock and use artificial intelligence and analytics on partial discharge data to flag potential issues.

ABB said the deal responds to growing demand from operators of data centres, hospitals, utilities and other facilities that face high financial and safety risks from downtime. These sectors run large volumes of critical electrical equipment such as switchgear and cables, where insulation breakdown can cause outages and damage.

Focus on downtime

ABB cited industry data that links partial discharge activity to a large share of asset failures. Partial discharge refers to small electrical sparks within insulation that develop before full equipment breakdown. ABB said such activity causes more than 80 per cent of asset failures that occur ahead of unexpected outages.

IPEC's systems detect this activity and feed it into diagnostics software. Asset owners can then schedule repair or replacement work before a fault develops into a failure.

ABB said the integration of IPEC's technology will extend its predictive maintenance services. The group forecasts that customers can cut downtime by up to 90 per cent and maintenance costs by as much as 85 per cent when they shift from reactive repairs to planned interventions based on continuous monitoring.

Stuart Thompson, Division President, ABB Electrification Service, linked the acquisition to cost and risk pressures on operators of critical infrastructure.

"Across critical industries, the cost of downtime is staggering, from multi-million-dollar revenue losses in data centers to the safety and reliability risks facing utilities and hospitals. This acquisition gives our customers the diagnostic intelligence they need to prevent failures before they happen. By turning complex monitoring data into clear, actionable insights, we're enabling businesses to shift from reactive repairs to predictive maintenance, so they can focus on performance while their critical infrastructure runs leaner, cleaner, and smarter," said Thompson.

Expanding US data centre reach

IPEC employs around 70 people across operations in Oxford, Abu Dhabi, Sweden, Riyadh and Texas. It grew from a UK utility customer base and now supplies monitoring systems to clients globally.

The company said data centres now represent its largest and fastest-growing segment, particularly in the United States. That customer base will give ABB a stronger position in the fast-expanding US data centre market, which is investing in electrical reliability as facilities scale up to handle artificial intelligence workloads and cloud services.

IPEC's flagship monitoring platform can track up to 128 connection points at the same time. The system conducts 24/7 surveillance of switchgear, cables and other high-voltage equipment and uses the company's proprietary DeCIFer algorithm to analyse partial discharge data. The algorithm identifies patterns and anomalies that suggest insulation degradation.

Asset managers use the diagnostics reports to prioritise maintenance, replace ageing components and extend the operating life of transformers, switchgear and cables. ABB said this can add decades to the service life of some infrastructure.

AI-based diagnostics

IPEC has invested heavily in software and analytics. It has incorporated artificial intelligence and machine learning into its diagnostics tools over recent years as sensors and monitoring hardware have become more widespread in substations and industrial plants.

Dr Colin Smith, Managing Director of IPEC, said the company had focused on interpreting partial discharge data in a way that asset managers can apply.

"At IPEC, we've spent decades refining how partial discharge data can be translated into meaningful diagnostics through advanced algorithms and, more recently, AI and machine learning. By joining ABB, we can both continue to develop our technology and bring our innovations to more industries and markets, turning complex data into predictive insight that anticipates potential failures and enables industries to make more strategic, intelligent decisions about their electrical assets," said Smith.

ABB said it plans to integrate IPEC's products into its wider service offering for electrification and automation customers after completion of the deal. The group expects growing regulatory and commercial pressure on infrastructure operators to improve reliability and asset management practices in the coming years.