Siemens Invests €300M to Expand Switchgear Production

Siemens will invest €300 million to expand its manufacturing capacity for electrical switchgear in Germany, responding to surging global demand driven by AI data centres, industrial electrification, and e-mobility.

The investment includes the expansion of two existing facilities in Frankfurt and the construction of a new supplier plant in nearby Offenbach.

Construction will begin in July 2026, with production at the new facility expected to start in spring 2027. Siemens says the project will create around 700 new jobs across manufacturing, logistics, and administration by the end of the decade.

AI data centres drive unprecedented demand

The expansion is part of Siemens’ broader strategy to increase global production capacity for power distribution technologies. Earlier this year, the company announced an additional US$165 million investment in its U.S. factories to support AI and data centre growth in North America.

Electrical switchgear plays a critical role in distributing and managing power in data centres, industrial facilities, and other energy-intensive environments. According to Siemens, the rapid adoption of artificial intelligence is significantly accelerating investment in data centre infrastructure, increasing demand for advanced power distribution systems.

While AI is often associated with chips and servers, it is also driving demand for electrical infrastructure. Every new generation of AI data centres requires significantly more sophisticated power distribution systems than conventional facilities.

The company reported record order intake of €1.9 billion for its Smart Infrastructure data centre business during the second quarter of fiscal 2026, while first-half revenue from these technologies increased by more than 45% year-on-year to €1.8 billion.

Frankfurt remains global manufacturing hub

Siemens has manufactured switchgear in Frankfurt for more than four decades. The site also develops SF₆-free switchgear using the company’s “Clean Air” insulation technology, supporting the industry’s transition toward more environmentally sustainable electrical infrastructure.

The investment reinforces Siemens’ position as a supplier to global cloud and AI companies while strengthening Europe’s manufacturing base for critical power infrastructure technologies. As next-generation AI data centres continue to grow in size and energy consumption, efficient and reliable electrical distribution systems are becoming an increasingly important part of digital infrastructure.