Siemens Energy’s $1 billion US investment aims to meet surging AI-driven data centre power demands

Siemens Energy plans a $1 billion expansion of electrical gear production across the US, driven by soaring demand from data centres and AI applications, promising new jobs and accelerated infrastructure build-out.

Siemens Energy is poised to spend $1 billion expanding production of electrical gear in the United States, a move the company says responds to surging demand from power-hungry data centres and the artificial intelligence models that run inside them. Christian Bruch, the chief executive of Siemens Energy, told reporters in New York, “The models” , the A.I. computer programs , “need to be trained,” and he added, “The electricity need is going to be there.” According to reporting on the announcement, the outlay will support manufacturing across several states and is expected to create roughly 1,500 jobs. (Sources: Investing.com, Siemens press releases).

The investment will be allocated to a mix of upgrades at existing facilities and new construction, including a planned factory in Mississippi to manufacture electrical switchgear, the equipment utilities use to manage and route high-voltage power. Industry reporting indicates the Mississippi plant is intended to come online by 2028 and forms part of a broader strategy to increase U.S. production capacity for large turbines and grid equipment. Siemens has previously announced substantial U.S. manufacturing investments in recent years, signalling a sustained pivot toward domestic infrastructure build-out. (Sources: Investing.com, Siemens press releases 2023 and 2025).

Analysts and bank research have repeatedly warned that A.I.-driven data centres will materially raise electricity consumption. Goldman Sachs Research projects data centre power demand could rise by about 160% by 2030, lifting the share of electricity used by data centres in the U.S. and Europe from the low single digits to the high single digits. Siemens Energy’s own order book has reflected that trend, with the company reporting record activity and noting a large share of recent gas turbine orders were destined for data centre customers. (Sources: Goldman Sachs, Siemens Energy order reports).

The expansion targets components that utilities and hyperscale cloud operators increasingly require for rapid deployment: medium- and high-voltage modular solutions, switchgear and turbine components. Siemens’ recent commercial collaborations with major data centre developers to supply custom modular electrical systems underscore how manufacturers are tailoring products to accelerate facility build timelines while easing integration with local grids. Such equipment is central to utilities’ efforts to manage rising peak loads and to developers’ plans to bring new capacity online quickly. (Sources: Siemens press releases, Compass Datacentres agreement).

Company commentary frames the investment as both a response to near-term customer demand and a long-term bet on structural growth in U.S. electricity consumption. Reporting on the expansion indicates Siemens Energy expects the programme to boost global production capacity for large turbines by roughly one-fifth, while the Mississippi project and other plant upgrades form part of a multiyear cadence of U.S. investments that began with earlier commitments totalling hundreds of millions of dollars. The precise timing and final scale of capacity increases will depend on construction schedules and order flow. (Sources: Investing.com, Siemens press releases 2023 and 2025).

The widening gap between where data centres locate and where fresh grid capacity can be added creates both opportunity and friction. Utilities and grid planners will need to coordinate permitting, interconnection and local upgrades if the projected surge in demand materialises. Siemens Energy’s push into U.S. manufacturing is likely to be welcomed by developers and grid operators seeking shorter lead times for critical equipment, but outcomes will hinge on how quickly projects progress and how policymakers and regulators manage grid integration challenges. (Sources: Goldman Sachs, Siemens press releases).

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Source: Fuse Wire Services