Germany’s Siemens Energy has announced that it intends to invest $1 billion in expanding the production of components for the American power grid and gas turbines that should guarantee the supply of data centers for artificial intelligence.
The world’s largest technology companies are investing hundreds of billions in American data centers, which will need more energy than the outdated electrical distribution network can handle.
Data centers could occupy 12 percent of US network capacity in two years, nearly triple the share in 2024, according to government reports.
The US is currently the most profitable electricity market in the world, with the most orders in 2025, and I don’t see an end to that trend, Siemens Energy CEO Christian Bruch told Reuters.
The needs of large technology companies have resulted in a wave of jobs to build new power plants and network them, but the plans are hindered by supply chain obstacles and lengthy permitting processes.
Siemens Energy’s announced $1 billion investment, part of a broader $7 billion package, includes construction of a new power grid equipment plant in Mississippi, which Bruch said will be the German group’s largest such facility in the world.
The plant should be completed in 2028.
Expansion in the United States would increase Siemens’ global capacity for the production of large turbines by a fifth, notes Bruch.
The turbine factory in Berlin could turn to clients in Europe and the Middle East, he adds.
The US accounts for almost a quarter of Siemens Energy’s revenue, with a 12 percent share of the workforce.
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