US data centres set for a boost thanks to US$500m investment

Siemens' investment for 2023 has surpassed US$500m
Siemens is to invest millions in US manufacturing for critical infrastructure, including for a US$150 million manufacturing plant to power data centres

American data centre infrastructure is set to benefit from a windfall of investment by German multinational technology conglomerate Siemens.

This month Siemens revealed it is to invest more than US$500 million in US manufacturing for critical infrastructure this year to support high-growth markets including the likes of data centres, as well as batteries, semiconductors, EV charging and rail transportation.

Part of this investment is money for a US$150 million new state-of-the-art manufacturing plant in Dallas-Fort Worth, Texas to help power American data centres and critical infrastructure. 

“There’s never been a better time to invest in critical electrical infrastructure and green mobility to support the backbone of America’s economy,” said Roland Busch, President and CEO of Siemens AG. “The hardware and software we offer – produced through our expanded Us manufacturing presence – will ensure that growing industries can meet demand while continuing to make progress in decarbonising operations.

“With this latest step, Siemens is delivering on its €2 billion (US$2.14bn) global investment strategy for 2023 to boost growth, innovation and resilience.”

Production at the new facility is expected to start in some capacity in 2024, with it gearing up for full operations in 2025.

Accelerated growth of US data centres thanks to exponential growth of AI

The planned Dallas-Fort Worth facility has been invested in with the aim of it producing the latest reliable and efficient electrical high-tech equipment, accelerating the growth of data centres across the United States.

In Siemens' eyes, this investment is critical thanks to the exponential adoption of generative AI that is driving the growth of the wider data centre industry.

The manufacturer also claims the products coming from this facility will ensure secure operation of critical infrastructure. This investment, Siemens says, specifically supports long-term customers in the data centre space, where demand is expected to grow by around ten percent annually through 2030. 

Creating 1,700 jobs in the US

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Siemens’ investments has resulted in a staggering 1,700 jobs being created at the company. As well as investing in the Texas manufacturing facility, the brand has announced a US$220 million investment in a new rail manufacturing facility in North Carolina as well as two electrical-products manufacturing plants in Texas and California, bringing the overall investment in the US this year to US$510m.

The new Fort Worth facility, as well as the two additional electrical manufacturing plants, are expected to meet booming demand for the electrification of critical infrastructure. 


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