Siemens to make transformers in US to meet rising power demand

SIEMENS Energy, the German energy giant, will start producing transformers in the United States next year to meet the growing demand for electricity.  

The company is investing US$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.

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 centres that power artificial intelligence spring up across the US.

About 80 per cent 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 on Tuesday (Feb 13). “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 US$7 million over 12 years. BLOOMBERG