Germany, Offenbach: Siemens is investing $341 M to expand its global production capacity for electrical switchgear used in data centres and other high-demand applications.
The investment will support the construction of a new supplier facility in Offenbach, Germany, and the expansion of two existing facilities in Frankfurt am Main. Construction work at the Frankfurt sites is scheduled to begin in July 2026, while the Offenbach facility is expected to start in spring 2027.
Siemens said the expansion will help secure the global supply of electrical switchgear, which is used to distribute and regulate power in data centres, factories and other industrial facilities. The investment is expected to create up to 700 jobs by the end of 2030.
The announcement follows Siemens’ earlier investment to expand its footprint in the United States.
According to the company, demand for smart electrification technologies is growing worldwide, driven by data centres, e-mobility and industrial automation. The rapid expansion of artificial intelligence is also increasing the need for efficient and reliable power distribution systems.
Siemens said orders from data centres reached $2.16 B in the second quarter alone, while demand for its electrical switchgear technologies increased by more than 45 % in the first half of 2026.
Peter Koerte, CEO of Siemens Smart Infrastructure, said the global data centre market is growing at rates well above 10 %, with next-generation AI data centres creating major new energy requirements.
Siemens plans to gradually transfer preproduction from its main factory in Frankfurt to Offenbach, located around six kilometres away. The expanded Frankfurt facilities are expected to significantly increase switchgear production capacity by the end of 2030.
Source: Electronics 360
