Germany / USA: Siemens Energy is set to invest $1 B to expand its production of power grid equipment and gas turbine components in the United States, responding to a sharp rise in electricity demand driven by new data centres for artificial intelligence.

The move comes as major technology firms commit hundreds of billions of dollars to building data centres across the US. These facilities are expected to require far more power than the country’s ageing electricity network can currently deliver. Government reports suggest data centres could account for 12 % of total US grid capacity within two years, almost three times their share in 2024.

Speaking to Reuters, Siemens Energy chief executive Christian Bruch described the US as “the hottest electricity market in the world”, adding that he sees no sign of demand easing. He said the country was the company’s largest market for new orders last year.

Technology companies are racing to secure power supplies that can be built and connected quickly, but efforts are being slowed by supply chain constraints, lengthy permitting procedures and other obstacles.

The $1 B US investment forms part of a wider $1.2 B (€6 B) expansion programme. It includes plans to build a new factory in Mississippi to manufacture power grid equipment. Bruch said this would become Siemens Energy’s largest grid facility worldwide and is expected to be completed in 2028.

The US, which currently accounts for 22 % of Siemens Energy’s sales and 12 % of its workforce, will see a significant capacity boost. The expansion is expected to increase the company’s global large turbine production capacity by around 20 %.

Much of the demand, Bruch noted, is coming from data centres. Siemens Energy already has around 20 GW of generation capacity tied to US data centre projects through confirmed orders and reservation agreements.

Source: Reuters

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