Siemens is investing €300 million to significantly expand the production of key technologies for the global energy transition and for AI data centers.
This strategic investment will enable the company to respond to massively increasing demand and further develop its position as a partner to world-leading cloud and AI companies.
The investment is part of a move to expand Siemens’ global capacity. In March 2026, the company announced an investment of US$165 million in its U.S. factories to support the rapid growth of AI and data centers in the U.S. By expanding its manufacturing locations in Germany, Siemens is now taking a further step to secure the global supply of electrical switchgear. The investment encompasses a new supplier facility in Offenbach, Germany, and the expansion of the company’s two existing plants in Frankfurt am Main, Germany. Construction will start in July 2026. Production at the supplier facility will begin in the spring of 2027. 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. To meet it, we’re expanding a location that already stands for extraordinary flexibility and the highest level of variation diversity. Because competitiveness is created where technology, knowhow and human experience combine to provide customers with optimal solutions. This combination is precisely what makes this location strong. It’s also why we’re continuing to invest here.”
Siemens has been producing electrical switchgear – which functions like a nerve center to distribute and optimally regulate power in factories and data centers – at its Frankfurt location for over 40 years. Demand for these systems is continuing to increase worldwide – driven by the development of e-mobility and data centers, the increasing electrification of factories and the growth of the technology industries. The rapid spread of AI, in particular, is accelerating investments in data center infrastructure and driving demand for efficient power distribution technologies. Siemens’ Smart Infrastructure Business booked record orders of €1.9 billion from data centers in Q2 2026. In the first half-year of 2026, the revenue generated by these technologies also soared more than 45 percent to €1.8 billion.
“The data center market is booming worldwide with growth rates well above 10 percent,” 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.”
As part of the investment, Siemens will lease and then expand an additional location in Offenbach, starting in July 2026. Production will begin in the spring of 2027. The company plans to gradually transfer preproduction from its main factory in Frankfurt to Offenbach, six kilometers away. Siemens will also expand its two plants in Frankfurt, where it will erect another manufacturing facility by the end of October 2027. These steps are intended to significantly increase switchgear production capacity. The up to 700 new jobs to be created by the end of 2030 will be distributed across all three locations – from jobs in administration to manufacturing and logistics.
“This is a great signal for the Frankfurt-Rhine-Main region,” said Frankfurt mayor Mike Josef. “Frankfurt and its surroundings have shown yet again that they remain an attractive location for business and industry. Strengthening industrial production in the Rhine-Main region is also a welcome development. Manufacturing is a vital second pillar alongside the region’s strong financial sector. In a particularly positive development, the spaces that will become vacant at the main factory will be used to increase switchgear production capacity while final production will take place in Frankfurt. I’d like to thank all the participating authorities, companies – in particular, the business development organizations – and Siemens for their productive collaboration.”
“Siemens’ new location in Offenbach demonstrates that industry has a future in Germany – if government, public administration and the business community cooperate closely and in a spirit of mutual trust,” said Dr. Felix Schwenke, mayor of the city of Offenbach am Main. “This new location has only become possible because we in Offenbach – partnering with the chamber of industry and commerce – have secured spaces for industry and trade in a targeted fashion. I’d like to thank Siemens for its trust and very concrete collaboration from the start. These new industrial jobs in a growing future-oriented sector will enable Offenbach to continue its upward trajectory of the past few years.”
Siemens is the only company worldwide that produces medium-voltage and high-performance switchgear systems at a single location – with decades of experience in development, manufacturing, services, quality assurance, environmental management and test technology with an accredited test lab. The Frankfurt switchgear factory currently comprises two plants and employs around 2,800 people in production, research and development, and automation. The factory is not only the company’s global center of competence for gas-insulated switchgear; it is also a pioneer in switchgear that does not rely on the climate-damaging insulation gas sulfur hexafluoride (SF₆). Instead, the switchgear’s fluoride-gas-free solutions use clean air gas comprising natural components from the surrounding atmosphere. Siemens developed and marketed these solutions long before the enactment of the related EU directive. As a result, the company can now supply them to customers rapidly and in large numbers.
This investment will enable Siemens to strengthen its commitment to Germany as a business location and to the Made for Germany initiative, whose 134 member businesses are pledged to sustainably strengthen the power of innovation, competitiveness and future-readiness. Between 2025 and the end of 2028, these businesses will jointly invest more than €800 billion in Germany.
(Siemens)
