Siemens AG is expanding its support for electrical switchgear technologies used in data centers by expanding its global capacity in Germany with a $341 million investment.
The investment comes after the company already expanded its U.S. footprint with a $165 million investment. The German investment will include a step to secure the global supply of electrical switchgear used in data centers.
The money will be used to build a supplier facility in Offenbach, Germany, and the expansion of two existing facilities in Frankfurt am Main, Germany. Construction will begin in July of 2026 on the Frankfurt facilities, and the Offenbach factory will start in the spring of 2027, Siemens said. The investment will create up to 700 new jobs by the end of 2030.
“This investment will enable us to strengthen our leading role in the technologies that will build the backbone of tomorrow’s industries,” said Roland Busch, president and CEO of Siemens AG. “The demand for smart electrification – whether for data centers, e-mobility or industrial automation – is growing worldwide.”
The demand for electrical switchgear, which is used to distribute and regulate power in factories and data centers, is continuing to increase globally due to the rapid spread of artificial intelligence (AI), Siemens said. The investments in data center infrastructure and need for efficient power distribution technologies led Siemens to book $2.16 billion from data centers in the second quarter alone. Siemens said its electrical switchgear technologies soared more than 45% in the first half of 2026.
“The data center market is booming worldwide with growth rates well above 10%,” said Peter Koerte, CEO of Siemens Smart Infrastructure. “The next generation of data centers is already on its way. AI factories that produce only one product: intelligence. Large-scale industrial systems with huge energy requirements. None of this is possible without the next generation of switchgear: the technological core of the super brain of tomorrow’s industry. And we’re building it right here in Frankfurt.”
Siemens said it plans to gradually transfer preproduction from its main factory in Frankfurt to Offenbach, which is about six kilometers away.
The expansion of the two Frankfurt plants will significantly increase switchgear production capacity once the facilities are up and running by the end of 2030, Siemens said.
