Siemens bets €300M on German factories to power AI data center boom
What's the deal? SiemensDealroom has a profile for this one. Try Dealroom → is investing €300 million to expand production of electrical switchgear in Germany, adding a new supplier facility in Offenbach and enlarging its two existing plants in Frankfurt am Main. Construction starts in July 2026, with the Offenbach facility beginning production in spring 2027. The move will create up to 700 jobs across the three sites by the end of 2030.
Why now? Demand for power distribution technology is surging on the back of AI data centers, e-mobility, and factory electrification. Siemens says its Smart Infrastructure business booked record orders of €1.9 billion from data centers in Q2 2026, while revenue from these technologies rose more than 45% to €1.8 billion in the first half of 2026.
What's the endgame? Switchgear distributes and regulates power in factories and data centers — Siemens has built it in Frankfurt for over 40 years. The company plans to shift preproduction from its main Frankfurt factory to Offenbach, six kilometers away, and erect another manufacturing building in Frankfurt by the end of October 2027.
The bigger play: The German expansion follows a US$165 million investment in US factories announced in March 2026, also aimed at AI and data center growth. Together, the moves signal Siemens tightening the global supply of electrical infrastructure.
“The demand for smart electrification — whether for data centers, e-mobility or industrial automation — is growing worldwide,” said Roland BuschDealroom has a profile for this one. Try Dealroom →, president and chief executive officer of Siemens AG.
The signal: As AI factories drive energy needs higher, the unglamorous hardware that moves electricity is becoming a strategic bottleneck. Siemens is positioning itself as a core supplier to the cloud and AI companies building the next generation of data centers.
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Image credit: Arash-ka
