According to the company, Siemens is responding to the sharp rise in global demand for electrical switchgear, particularly in light of the expansion of AI data centers and the energy transition. At the same time, Siemens is further expanding its role as a partner to international cloud and AI companies.

700 new jobs by 2030

The investment is part of a global capacity expansion. Back in March 2026, Siemens had already announced investments totaling 165 million U.S. dollars for its plants in the U.S. to support the growth of AI and data centers there. By expanding its manufacturing sites in Germany, the company aims to secure the global supply of electrical switchgear.

Construction work in Germany will begin in July 2026. In addition to the expansion of the two existing plants in Frankfurt, a new supplier plant will be built in Offenbach. Production there is scheduled to begin in the spring of 2027. By 2030, a total of 700 new jobs in administration, manufacturing, and logistics are expected to be created at the three locations.

“With this investment, we are strengthening our leadership role in technologies that form the backbone of tomorrow’s industries,” says Roland Busch, CEO of Siemens AG. “Whether it’s data centers, electric mobility, or industrial automation—the demand for smart electrification is growing worldwide. To meet this demand, we are expanding a site that already stands for exceptional flexibility and the widest possible range of variants. After all, competitiveness arises where technology, expertise, and people’s experience come together to deliver the best solutions for customers. That is precisely what makes this site strong—and it is the reason why we continue to invest here.”

Switchgear: The Technical Heart of Industry's Future "Superbrains"

At its Frankfurt facility, Siemens has been manufacturing electrical switchgear for power distribution in factories and data centers for more than 40 years. According to the company, demand for these systems is rising due to the expansion of electric mobility, the increasing electrification of industrial production facilities, and the growth of data centers and the technology industry. In particular, the rapid spread of artificial intelligence is accelerating investments in data center infrastructure and increasing the need for efficient power distribution technologies.

Siemens Smart Infrastructure recorded a record order intake of 1.9 billion euros in its data center business in the second quarter of fiscal year 2026. Revenue from these technologies rose by more than 45 percent to 1.8 billion euros in the first half of 2026.

“The data center market is booming worldwide, with growth rates well over ten percent,” says Peter Körte, CEO of Siemens Smart Infrastructure. “The next generation of data centers is currently taking shape. AI factories that produce only one thing: intelligence. Large-scale industrial facilities with enormous power demands. For this, we need next-generation switchgear—the technical heart of industry’s future superbrains. And we’re building them right here in Frankfurt.”

Siemens in Offenbach

As part of the project, Siemens will lease and expand a site in Offenbach starting in July 2026. Prefabrication is to be gradually relocated from the main plant in Frankfurt to the supplier plant, which is about six kilometers away. At the same time, the company is expanding its two Frankfurt plants and will construct an additional production hall there by October 2027. The goal is to significantly increase production capacity for switchgear.

“This is a great sign for the Frankfurt-Rhine-Main region,” says Frankfurt Mayor Mike Josef. “Once again, it shows that Frankfurt and the region remain an attractive location for business and industry. It’s good that the Rhine-Main region is also being strengthened in the area of industrial production. It serves as an essential second pillar alongside the strong financial sector. It is particularly positive that the space being freed up at the main plant will be used to increase production capacity for switchgear and that final production will take place in Frankfurt. I would like to thank all the government agencies and companies involved, especially the Economic Development Agency, as well as Siemens for their excellent cooperation.”

“Siemens’ decision to locate in Offenbach shows that industry has a future in Germany—provided that politicians, government officials, and the business community work closely together in a spirit of trust,” says Dr. Felix Schwenke, mayor of Offenbach am Main. “The fact that we in Offenbach, together with the Chamber of Industry and Commerce, have specifically secured land for industrial and commercial use is what made this expansion possible in the first place. I thank Siemens for its trust and for its very concrete cooperation from the very beginning. With these new industrial jobs in a growing, forward-looking industry, Offenbach is continuing the upward trend it has seen in recent years.”

According to the company, Siemens is the only company in the world that develops and manufactures load and circuit-breaker technology at a single location. The Frankfurt switchgear plant currently employs approximately 2,800 people in production, research and development, and automation. The site serves as a center of excellence for gas-insulated switchgear and also develops SF₆-free switchgear that uses the insulating gas “Clean Air.” According to the company, these solutions were developed and marketed even before the relevant EU regulations took effect.

With this investment, Siemens is also reaffirming its commitment to Germany as a business location and to the “Made for Germany” initiative. Its 134 member companies plan to collectively invest more than 800 billion euros in Germany between 2025 and 2028 to strengthen the country’s innovative capacity, competitiveness, and future viability.