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AI Demand Sparks $1B Siemens Energy US Expansion
3 Feb
Summary
- Siemens Energy invests $1 billion to boost US manufacturing.
- Over 1,500 jobs to be created by the investment.
- Investment targets grid equipment and gas turbines for AI data centers.
Siemens Energy has announced a significant $1 billion investment aimed at expanding its manufacturing capabilities within the United States. This initiative is a direct response to the escalating demand for electricity, driven largely by the rapid growth of AI data centers. The investment will see the restart of critical gas-turbine manufacturing at a North Carolina facility, addressing a current supply shortage.
Further bolstering its U.S. presence, the company plans to establish a new high-voltage switchgear plant and training center near Jackson, Mississippi. This expansion also includes enhancements at existing sites in Alabama, New York, Texas, and Florida. In total, Siemens Energy anticipates creating more than 1,500 new jobs through these expansions.
The surge in electricity demand, projected to rise 25% between 2023 and 2030, necessitates these investments. Data centers alone are expected to consume a significant portion of U.S. electricity by 2028. Siemens Energy's CEO highlighted the critical need for strengthening the power grid alongside increasing generation capacity, emphasizing the importance of localized manufacturing.
