(Bloomberg) — ABB Ltd. raised its margin outlook as massive investments in data centers fueled demand for its power grid business, helping to offset lower sales of industrial automation products.

The Zurich company now sees its profit margin exceed the approximately 18% it had previously forecast, according to a press release published Thursday.

Orders rose 2% in the third quarter to $8.2 billion. While its electrification business grew, sales of its robotics and industrial automation products continued to suffer from weaker demand in China as customers focused on reducing inventories after a period of tensions in the supply chain. The company now expects revenue growth for the year to be lower than its previous estimate of around 5%.

The surge in investment in data centers, driven by the growth of artificial intelligence, has been a bright spot for ABB, which produces transformers that enable power grids to meet the centers’ substantial energy needs. The unit’s revenue rose 10% in the third quarter.

The company previously said it was starting to see signs of recovery in China, where inflation and rising interest rates have weighed on spending. The situation could improve further after Beijing recently announced new stimulus measures.

ABB’s e-mobility business remains a weak point. The company has streamlined its operations as it plans to sell some of its electric mobility assets, including electric vehicle charging stations around the world as well as research and development facilities in China.

ABB shares are up about 32% this year.

(Updated with additional details throughout.)

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