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Siemens Expands U.S. Manufacturing with High-Tech Plant to Power Data Centers

Siemens Expands U.S. Manufacturing with High-Tech Plant to Power Data Centers
photo: Siemens AG/Siemens Expands U.S. Manufacturing with High-Tech Plant to Power Data Centers
06 / 11 / 2023

Siemens announced an investment of US$150 million in a new high-tech manufacturing plant in Dallas-Fort Worth to help power American data centers and critical infrastructure. This plant will produce state-of-the-art reliable and efficient electrical equipment. It will enable accelerated growth of U.S. data centers, which is being driven by the exponential adoption of generative AI. It will also ensure the secure operation of critical infrastructure. This investment specifically supports long-term customers in the data center space, where demand is expected to grow by around ten percent annually through 2030.

“There’s never been a better time to invest in critical electrical infrastructure and green mobility to support the backbone of America’s economy. The hardware and software we offer – produced through our expanded U.S. manufacturing presence – will ensure that growing industries can meet demand while continuing to make progress in decarbonizing operations,” said Roland Busch, President and CEO of Siemens AG. “With this latest step, Siemens is delivering on its €2 billion global investment strategy for 2023 to boost growth, innovation, and resilience.”

New projects create a total of around 1,700 jobs in the U.S.

As part of these investments, Siemens announced a US$220 million investment in a new rail manufacturing facility in Lexington, North Carolina, earlier this year. Construction of this facility is now underway. In addition, the company is investing in two electrical products manufacturing plants in Grand Prairie, Texas, and Pomona, California. These projects bring the overall investment in the U.S. this year to US$510 million, which will create 1,700 jobs at Siemens as a result.

The new Fort Worth facility and the Grand Prairie and Pomona extensions will meet booming demand for the electrification of critical infrastructure – in other words, data centers, battery plants, semiconductor facilities, and EV charging. Production at the new facility in Fort Worth is expected to start in calendar year 2024, gearing up for full operations in 2025. This factory will be built and operated using Siemens's advanced manufacturing tools, including digital twin technology and high-tech automation to ensure the highest quality, efficiency, and sustainability levels. The Siemens Xcelerator portfolio will be used to capture and analyze data from the shopfloor on production and product performance in real-time.

Siemens’ €2 billion global investment strategy to boost growth, innovation and resilience

In June 2023, Siemens announced its global investment strategy in new high-tech factories, innovation labs, and education centers to expand leadership in digitalization, automation, electrification, and sustainability. As part of this strategy – which totals around €2 billion – Siemens has disclosed investments in regions such as China, Southeast Asia, Europe, and the U.S.

Source: Siemens AG