Siemens Supports U.S. Infrastructure With Over $500 Million in Investments
Over the past year, Siemens has invested over $500 million in electricity-focused and artificial intelligence-driven infrastructure to support and grow the U.S. economy.
At the beginning of November, Siemens announced an investment of $150 million in a new plant in Dallas-Fort Worth to meet the growing demand for electrification of critical infrastructure. This investment is part of over $500 million in Siemens’ investments in U.S. manufacturing this year.
Siemens intends for its funds to help stabilize and grow the U.S. economy and promote wider adoption of AI-based technologies. The U.S. investments are part of a larger global investment of €2 billion in critical infrastructures across Europe, China, and Southeast Asia.
Siemens’ latest investment aims to help create an electrified, AI-driven future for the U.S. Image used courtesy of Siemens
Data Center Demand
AI technologies such as generative AI are pushing the demand for power-intensive data centers. Other factors impacting power consumption at data centers include fifth-generation communications and IoT devices. According to McKinsey and Company, demand is projected to rise to 35 gigawatts (GW) by 2030, nearly doubling from 17 GW in 2022.
Data centers will need an upgrade to keep up with the demands of AI. New equipment and more server space cost money, and the heat generated from power-intensive data centers also requires the installation of liquid cooling systems. The revenue losses from retrofitting and drawn-out timelines mean that outdated data centers will have to be constructed from the ground up.
Data centers will need more power and upgrades to keep up with the continued growth of AI. Image used courtesy of Adobe Stock
Powering the Future
The power grid in the U.S. can generally support power-intensive data centers, yet it faces challenges like regional disparities and increased energy demands from these facilities. To keep up with the growing demand, it is essential to continually upgrade infrastructure, invest in smart grid technologies, and incorporate renewable energy sources.
Effective strategies require collaboration among government agencies, utilities, and data center operators. Enhancing grid reliability and decreasing overall electricity consumption can be achieved by implementing demand response programs and promoting energy-efficient practices within data centers. Sustained collaboration is critical to ensuring the resilience of the U.S. power grid in the context of growing data center operations and evolving energy requirements.
Siemens’ investment is part of a larger series of investments to boost infrastructure and mobility in the U.S. and across the globe. Image used courtesy of Siemens
Supporting Critical Infrastructure
In response to the growing need to power data centers and critical infrastructure in the U.S., Siemens has already invested in two manufacturing plants specializing in electrical products in Pomona, California, and Grand Prairie, Texas. Now, Siemens is funneling $150 million into a new manufacturing plant to produce high-quality electrical infrastructure equipment in Dallas-Fort Worth. The facility will help run and maintain the expansion of U.S. data centers.
Once built, the electrical production facilities will contribute to the expansion of data centers and other critical infrastructure, such as semiconductor manufacturing plants, electric vehicle charging stations, and battery-making facilities—all of which are essential to the advancement of the U.S. economy and the electrification revolution.
The Fort Worth facility will employ Siemens' latest manufacturing tools and automated technologies to ensure efficiency and sustainable operations. The company will draw resources from its extensive Xcelerator portfolio to curate integrated hardware and software for real-time data collection and analysis to improve system performance and product quality.
It is anticipated that production will begin at the new Fort Worth facility in 2024, with full operations starting in 2025.
Investing in the Future
Earlier this year, Siemens also made a $220 million investment to create a manufacturing facility for rail transport. The new facility, which will reside in Lexington, North Carolina, waves the flag for green mobility in the U.S. These projects bring Siemens’ overall U.S. investments to $510 million this year, which the company expects will result in 1,700 new jobs, greater sustainability, and accelerated adoption of AI across the US.
