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Siemens Energy will undertake a $1 billion expansion of its U.S. manufacturing base, focusing on the production of gas turbines and power grid equipment (E&E News).

Where it’s happening: “Factories will be expanded in Alabama, Texas, New York and Florida, and Siemens Energy will restart a gas turbine manufacturing plant in North Carolina. In addition, a new factory will be built in Mississippi for manufacturing switchgears.”

The big picture: Manufacturers are seeing an upsurge in orders for turbines and grid equipment due to increasing electricity demand, in large part due to the expansion of manufacturing in the U.S. and the buildout of data centers.

High demand: Researchers are predicting that demand will continue to rise in the coming years.

• “The U.S. Energy Information Administration said last month that it expects domestic electricity use to grow 1% this year and 3% in 2027, capping the largest four-year growth period since 2000.”

AI investment: Siemens Energy will also partner with Nvidia on a laboratory for AI digital grid technologies in Orlando, Florida.

• “The two companies announced last month that they would partner on a suite of AI solutions to improve manufacturing and operation of equipment and developing a framework for AI-enabled factories.”

The NAM says: “Investments in gas turbines and grid equipment will ensure manufacturers in the U.S. continue to have access to reliable energy to power their growth,” said NAM Vice President of Domestic Policy Chris Phalen. “Congress must support manufacturing leaders like Siemens Energy with permitting reforms and other grid modernization measures to build on these efforts and unlock new levels of growth and investment in the years to come.”