Siemens Energy is investing $1 billion across several US states to support the expanded production of grid equipment, large gas turbines and related components, improve its supply chains and its workforce, as utilities and generation plant respond to the significant growth in power demand coming from data centres, artificial intelligence and industrial electrification. Siemens Energy’s expansion strategies were first outlined at its ‘Capital Market Day’ in November.
Siemens Energy is to expand its Tampa, Florida facility to increase production of gas turbine blades and vanes. It plans also to upgrade research and development capabilities at its Orlando Innovation Centre, including development of an artificial intelligence-focused digital grid laboratory.
Siemens Energy also intends to develop its apprenticeship programmes and expand workforce training initiatives to support long-term labour needs across the sector.
The plant investment includes increased transformer manufacturing and servicing, expanded gas turbine production and upgrades to facilities that manufacture and service compression equipment. A new high-voltage switchgear factory will be built in Mississippi, while in North Carolina, Siemens intends to increase manufacturing and service capacity for large power transformers and resumption of turbine manufacturing. Elsewhere in North Carolina new gas turbine component production is planned for Winston-Salem, while Raleigh will see expanded grid technology engineering, project execution and larger R&D facilities.
Utilities and grid operators have warned that meeting the increased power demand created by accelerating growth of hyperscale data centres and new industrial loads being added to the grid. will require significant additions in transmission capacity, substations, transformers and dispatchable generation.
