NEW YORK, Feb 3, 2026, 08:14 EST
- Siemens Energy is set to invest $1 billion in U.S. manufacturing, with a new grid-equipment plant in Mississippi slated to open in 2028.
- CEO Christian Bruch points to data centres as the main driver, with the company noting roughly 20 gigawatts linked to U.S. data-centre demand.
- Efforts to expand power and grid capacity are being slowed by delays in grid connections and a shortage of equipment.
Siemens Energy is set to pump $1 billion into expanding its U.S. production of power-grid and gas-turbine parts, responding to a surge in demand from AI-focused data centres. The investment includes a new power-grid equipment plant in Mississippi, which CEO Christian Bruch described as the company’s largest globally, with completion targeted for 2028. While Big Tech continues to pour hundreds of billions into data centres, the sector faces equipment shortages and permitting delays, driving a flurry of power-related deals. (Reuters)
The investment comes as utilities and policymakers race to model data-centre energy demands. According to a Congressional Research Service report, data centres consumed roughly 176 terawatt-hours in 2023—about 4.4% of total U.S. electricity use—with some forecasts suggesting that could climb to 12% by 2028. (Congress)
Grid connections are already a bottleneck. In Europe, it can take up to seven years to hook a data centre to the transmission network, with “certainty of the delivery date [still] delayed,” said Pamela MacDougall, Amazon Web Services’ head of energy markets and regulation for Europe, the Middle East, and Africa, in a Reuters interview. Across the U.S., connection queues typically run from one to three years, according to the International Energy Agency. (Reuters)
Siemens Energy CEO Christian Bruch described the U.S. as “the hottest electricity market in the world” and noted it was the company’s top market for order intake last year. The U.S. accounts for 22% of Siemens Energy’s sales and 12% of its workforce. He highlighted data centres as a major driver behind the surge, with around 20 gigawatts of generation capacity linked to U.S. data centres through orders and “reservation agreements” — contracts that secure future production slots. Bruch added that expanding in the U.S. will boost the group’s global large turbine capacity by about 20%, allowing the Berlin facility to focus more on Europe and the Middle East. (Investing)
Siemens Energy confirmed it has completed the investment program announced at its November capital markets day in Charlotte, North Carolina. The company is expanding operations at sites in Alabama, New York, Texas, and Florida, while also ramping up work in North Carolina and opening a new switchgear plant in Mississippi. For context, switchgear refers to the breakers and controls that manage and protect high-voltage electricity. (Siemens Energy)
In the Greater Richland Area, the company announced a new high-voltage switchgear factory that will employ up to 300 workers and feature a training centre. Additionally, it plans to create 500 jobs across three North Carolina communities, add 120 positions in Fort Payne, and establish an AI digital grid technologies lab in partnership with Nvidia as it moves its headquarters to Lake Nona in Orlando. Bruch described this expansion as a “once-in-a-generation growth opportunity,” while Doug Burgum called the investment “tremendous” in a company statement. (MarketScreener)
The $1 billion plan is part of a larger investment strategy Siemens Energy announced in November. The company plans to invest about 6 billion euros by 2028, dedicating roughly one-third of that to transformers, which adjust voltage levels, and switchgear plants. Meanwhile, GE Vernova has laid out roughly $9 billion in investments through 2028, according to Reuters. (Reuters)
Shortages are already pushing delivery times for critical gear to new lengths. According to Wood Mackenzie data shared at Reuters Events, demand for U.S. generation step-up transformers — which boost voltage from power plants — soared 274% between 2019 and 2025. By 2025, average wait times are expected to top two years. Edvard Christoffersen from Rystad Energy noted that “U.S. transmission capex” — spending on power lines and substations — is beginning to pick up pace. (Reuters)
Hitachi Energy announced plans to invest $1 billion in 2025 to boost U.S. manufacturing of grid components. This includes a new large power transformer plant in Virginia, set to start operations by 2028. “Bringing production of large power transformers to the U.S. is critical,” CEO Andreas Schierenbeck said. (Reuters)
Schneider Electric is ramping up its involvement in the data center space, securing close to $2.3 billion in U.S. contracts with players like Switch and Digital Realty. “Current data centre infrastructure wasn’t built to meet the demands of AI,” Vandana Singh said. Morgan Stanley analysts predict that global power consumption from data centers will nearly triple within three years. (Reuters)
Sizing the boom is tricky, and misjudging it can be costly. According to the World Resources Institute, forecasts differ greatly because utilities face speculative connection requests. Plus, shortages of transformers, switchgear, and gas turbines can delay construction by 24 to 72 months. Even projects that end up overbuilt or underused can still drive up costs for other customers. (Wri)
