Every major tech player is building massive data centers to feed the AI beast. These digital monsters are electricity hogs. Like, serious hogs. They gobbled up 4.4% of America’s power last year, and they’re just getting started.
Siemens Energy sees dollar signs where others see blackouts. The German industrial giant just announced a cool $1 billion investment to expand U.S. manufacturing of power-grid equipment. New Mississippi factory? Check. Production of critical switchgear? You bet. They’re not stupid – they know AI’s hunger for electricity won’t be satisfied anytime soon.
While others panic about the power grid, Siemens Energy is betting big on AI’s insatiable electricity appetite.
This isn’t some small-time gamble. It’s Siemens Energy’s largest worldwide investment ever, part of a mammoth €6 billion global program running through 2028. A third of that cash will specifically target transformers and switchgear – the boring but essential equipment that keeps electrons flowing to your ChatGPT queries.
The timing isn’t coincidental. Data centers could consume a whopping 12% of U.S. electricity by 2028. That’s triple the current load in just five years. Insane. Big Tech is dumping hundreds of billions into these facilities, and someone has to power them. With U.S. electricity demand already surging by 3% annually, this exponential growth presents both challenges and opportunities.
Siemens isn’t alone in this gold rush. GE Vernova plans to drop $9 billion by 2028. Schneider Electric has secured $2.3 billion in deals with data center operators. Hitachi Energy is joining the race with a $1 billion investment for grid components including a transformer facility in Virginia. Everyone wants a piece of this electrified pie.
The situation is getting desperate. Equipment shortages have projects delayed by two to six years. That fancy transformer you need? Get in line, pal.
CEO Christian Bruch isn’t being subtle about Siemens Energy’s motivation. It’s all about riding the AI wave. Siemens will showcase their Xcelerator portfolio at DTECH 2026 in San Diego, highlighting solutions that help utilities manage the growing demand. The company is simultaneously developing grid modernization software like Gridscale X that creates digital twins of power networks, making them smarter and more efficient.
The bet is clear: AI will keep demanding more power, and Siemens plans to cash in on every electron.
References
- https://www.bez-kabli.pl/siemens-energys-1-billion-u-s-bet-new-mississippi-switchgear-plant-taps-ai-power-boom/
- https://news.siemens.com/en-us/autonomous-grids-dtech-2026/
- https://news.siemens.com/en-us/siemens-unveils-technologies-to-accelerate-the-industrial-ai-revolution-at-ces-2026/
- https://press.siemens.com/global/en/pressrelease/siemens-unveils-technologies-accelerate-industrial-ai-revolution-ces-2026
