German Automation Giant Siemens Invests More In US, Creates New Jobs: A Boon For Data Centers?

Automation major Siemens AG SIEGY has planned an investment of more than $500 million in the U.S. manufacturing space.

The company will invest $150 million in a new high-tech manufacturing plant in Dallas-Fort Worth, Texas, to help power American data centers and critical infrastructure.

The plant will produce electrical equipment to enable U.S. data center growth, which is being driven by the adoption of generative AI.

The investment specifically supports long-term customers in the data center space, where demand is expected to grow by around ten percent annually through 2030, said the company.

Siemens has already made a commitment of $220 million investment in a new rail manufacturing facility in Lexington, North Carolina, in early 2023.

In addition, the company will invest in two electrical-products manufacturing plants in Grand Prairie, Texas, and Pomona, California.

All the listed projects bring the overall investment in the U.S. this year to $510 million, having the potential to create 1,700 jobs.

"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 President and CEO Roland Busch.

The investment is a part of Siemens' €2 billion global investment strategy for 2023, announced in June.

Siemens has so far disclosed investments in regions such as China, Southeast Asia, Europe, and the U.S. as part of the investment.

Price Action: SIEGY shares are trading higher by 0.42% at $68.60 on the last check Friday.