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.

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. It is anticipated that the investment will create 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 centres, 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 centre to distribute and optimally regulate power in factories and data centres – 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 centres, the increasing electrification of factories and the growth of the technology industries.

The rapid spread of AI, in particular, is accelerating investments in data centre infrastructure and driving demand for efficient power distribution technologies. According to the company, Siemens’ Smart Infrastructure Business booked record orders of €1.9 billion from data centres 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 centre market is booming worldwide with growth rates well above 10 percent,” said Peter Koerte, CEO of Siemens Smart Infrastructure. “The next generation of data centres 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."