(Bloomberg) —
Siemens Energy AG, the German energy giant, will start producing transformers in the US next year to meet growing demand for electricity.
The company is investing $150 million to expand its power manufacturing plant in Charlotte, North Carolina. It already has started early work, according to Rich Voorberg, president of Siemens Energy North America.Play Video
Transformers are a key part of the power grid, used to manage voltage levels as electricity flows from generating plants to users. Demand for electricity has increased by massive amounts as data centers that power artificial intelligence spring up across the US.
Read More: AI Needs So Much Power That Old Coal Plants Are Sticking Around
About 80% of the transformers used in the US are produced in other countries so establishing a domestic supply chain will be critical, Voorberg said. The company expects production to start in 2026.
“What we really saw within our industry is that the load started picking up,” Voorberg said in an interview Tuesday with Bloomberg TV. “The demand side for transformers is so much bigger than it was in the past.”
A grant from North Carolina potentially would reimburse the company almost $7 million over 12 years.
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