For years, the conversation around artificial intelligence has centred on one unsettling idea: machines replacing people. But in Napier, the global AI boom is doing the opposite. It is creating jobs, driving investment, and putting Hawke’s Bay at the heart of the infrastructure that keeps the digital world running.
At ABB’s Napier manufacturing and research facility, the surge in AI-driven data centres has transformed what was once a business facing uncertainty into one of the region’s fastest-growing exporters. Demand for advanced power protection systems has exploded, and with it, the need for skilled engineers, technicians, and production staff.
“We are not building software or algorithms,” says Sander Stork, General Manager – Local Product Manager based in Napier. “We are building the systems that make sure the digital world never goes dark.”
That capability has deep roots in Hawke’s Bay. The technology that now underpins the global success of the Napier site was originally pioneered by local firm VecTek Electronics, founded by engineer and entrepreneur John Penny in Onekawa.
VecTek developed world-leading expertise in active voltage conditioning and power protection, laying the foundations for what would eventually become ABB’s HiPerGuard medium voltage uninterruptible power supply system.
ABB acquired VecTek in 2008, retaining the engineering talent and intellectual capital that had been built locally. In 2013, then Prime Minister John Key officially opened a purpose-built 6,500 square metre research and development centre and factory beside Hawke’s Bay Airport, cementing Napier’s role within ABB’s global manufacturing network.
“Keeping that knowledge here was critical,” says Sander. “The innovation culture that started with VecTek is still very much alive at this site today.”
Just a few years ago, however, the future of the operation was less certain. ABB’s facility in Napier specialises in low and medium voltage power protection systems, historically supplying semiconductor manufacturers and industrial clients through large, project-based contracts.
“That meant peaks and troughs,” Sander explains. “There were periods where demand was inconsistent. We were profitable, but long-term certainty was hard to achieve.”
The turning point came as artificial intelligence began driving unprecedented growth in global data centre infrastructure.
“Data centres cannot tolerate power instability,” says Sander. “Even milliseconds matter. If a data centre goes down, the financial and reputational impact will be enormous.”
ABB’s HiPerGuard system acts as a sophisticated insurance policy for these facilities, smoothing voltage disturbances, protecting sensitive equipment from sags and surges, and ensuring continuous operation while standby systems engage.
As demand accelerated, a major international data centre developer, Applied Digital, identified ABB’s Napier facility as a strategic partner. Orders surged, and with them, the scale of the operation.
Over the past year, the Napier site has added 50 new staff, with a further 50 roles planned for 2026. Production capacity has increased dramatically, and the business is expanding its manufacturing footprint, while relocating warehousing and dispatch operations to support continued growth.
Almost everything produced at the Napier facility is exported, with systems shipped to data centre projects across North America and Europe. In recognition of that performance, ABB was crowned Hawke’s Bay’s Exporter of the Year in 2025, also taking out the Supreme Award at the ExportNZ ASB Hawke’s Bay Export Awards.
“That award was a real moment of pride for the team,” says Sander. “It recognised the complexity and quality of what we do here.”
Under Sander’s leadership, the ABB facility in Napier has become a cornerstone of the region’s advanced manufacturing sector.
“This is high-value, export-led technology,” he says. “It shows that Hawke’s Bay can compete globally, not just in food and agriculture, but in complex engineering and innovation.”
While AI continues to fuel debate about the future of work, ABB Napier offers a powerful counter-narrative, one where human expertise, engineering skill, and long-term thinking remain essential.
“AI does not run on ideas alone.” Sander says. “It runs on electrons. And someone has to make sure those electrons behave.”
In Napier, that legacy began with a local innovator, was scaled by a global company, and is now helping power the world’s AI future.
