Germany’s Siemens Energy on Tuesday committed $1 billion to expand its U.S. manufacturing base as the United States faces surging demand for gas turbines and power grid equipment.
Factories will be expanded in Alabama, Texas, New York and Florida, and Siemens Energy will restart a gas turbine manufacturing plant in North Carolina. In addition, a new factory will be built in Mississippi for manufacturing switchgears.
Top manufacturers Siemens Energy, GE Vernova and Mitsubishi Heavy Industries are trying to keep pace with their growing order books for gas turbines and grid equipment. GE Vernova saw a 52 percent increase in power equipment orders in 2025 and now has a backlog roughly equivalent to 40 gigawatts of electricity. It saw a 74 percent year-over-year increase in gas turbine orders.
The spending plans come as the U.S. power sector faces a surge in demand for the first time in decades, fueled by electrification and manufacturing and the growth in power-hungry data centers to serve the tech industry. Consulting firm Grid Strategies predicted in a report late last year that the country’s peak electricity demand could grow 166 gigawatts by 2030, a 3.7 percent annual growth rate.
The U.S. Energy Information Administration said last month that it expects domestic electricity use to grow 1 percent this year and 3 percent in 2027, capping the largest four-year growth period since 2000.
Siemens Energy CEO Christian Bruch said in a statement that the “current policy environment” has contributed to the momentum the company is working to meet.
“The Trump Administration has made energy security, a reliable and resilient grid, and growing U.S. manufacturing jobs a priority. This has supercharged the energy demand which is supporting new investments across the energy sector,” Bruch said. “We are excited to help write this next chapter of American energy expansion.”
Siemens Energy began building gas turbines at its Charlotte plant in 2011 but shut down production in 2020 as worldwide demand dipped. Today, however, demand has boomed, and a supply chain shortage has made it harder to bring new gas plants to the grid, with some developers waiting five years for parts.
According to Siemens Energy, the Charlotte plant should begin shipping turbines in the next two or three years.
In addition, Siemens Energy will expand its production of gas turbine parts at a facility in Winston-Salem, North Carolina, and will build more equipment for turbine production in Tampa, Florida.
The company will also partner with chip giant Nvidia to build an artificial intelligence digital grid technologies laboratory in Orlando, Florida. It will use AI to analyze real-world grid data to use existing resources better and to aid in disaster preparation and recovery. The two companies announced last month that they would partner on a suite of AI solutions to improve manufacturing and operation of equipment and developing a framework for AI-enabled factories.
An existing Siemens Energy facility in Raleigh, North Carolina, that works on grid technology will also expand. Siemens Energy also announced Tuesday that it would develop more copper and insulation components for electricity generators at an Alabama facility and will expand sites in New York and Houston that manufacture and service pipeline equipment.
