Siemens Energy to Spend $1 Billion Expanding U.S. Plants for A.I. Power Demand

Siemens Energy said it will invest $1 billion to expand manufacturing of electrical equipment in the United States, announcing the plan on Tuesday to grow existing plants in several states and build a new factory in Mississippi. The company said spending will be distributed across states including Florida and North Carolina, with much of the money going to expand existing plants and a new Mississippi factory to make electrical switchgear.

Siemens Energy expects the expansion to create around 1,500 jobs. The move is framed as a bet that the artificial intelligence boom — and the resulting plans for energy‑hungry data centers — will push U.S. electricity demand higher. “The models — the A.I. computer programs — need to be trained,” Christian Bruch, Siemens Energy’s chief executive, said in an interview, adding, “The electricity need is going to be there.” Many components needed to generate and move electricity have been in high demand, driving up prices and extending wait times, a condition that has benefited companies such as Siemens Energy.

The company’s shares have risen more than 160 percent in the past year, outperforming some firms more commonly associated with the A.I. boom. At the same time, supply‑chain constraints have made it harder and more expensive for utilities and others to expand electrical systems, a Barclays analyst wrote.

Demand for natural gas power plants is less certain.

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