Siemens Energy is set to invest $1 billion in the U.S. to expand power grid and gas turbine production, responding to surging electricity demand driven by the rapid growth of AI-powered data centres.
The German energy giant’s CEO, Christian Bruch, described the U.S. as “the hottest electricity market in the world,” noting that demand shows no signs of slowing. The investment is part of a broader €6 billion ($7 billion) global expansion plan.
Key elements include a new factory in Mississippi, set to become Siemens Energy’s largest facility for power grid equipment worldwide. Scheduled for completion in 2028, the facility will boost production capacity for large turbines by roughly 20% globally, while easing supply pressures on the company’s Berlin plant, which will now focus more on European and Middle Eastern clients.
Bruch highlighted that a major driver of the U.S. demand surge is the roughly 20 gigawatts of electricity needed for AI data centres, which has prompted a wave of power deals and infrastructure projects despite supply chain bottlenecks and regulatory hurdles.
The expansion reflects Siemens Energy’s strategy to capture growing opportunities in the U.S. market, which currently accounts for 22% of its sales and 12% of its workforce, while strengthening its global production network.