CHARLOTTE — Siemens Energy plans to begin U.S. production of large power transformers at its Charlotte facility by early 2027 — part of a major expansion driven by rising demand and persistent import tariffs, company executives said.
Currently, more than 80% of large power transformers used in the U.S. are imported, but Siemens Energy board member Tim Holt said that’s about to change. The Charlotte site, which already manufactures grid infrastructure components, will be the company’s first U.S. plant to produce these essential grid units locally.
“There’s plenty of room to expand further if the demand stays high,” Holt said during a company event in Erlangen, Germany, adding that the Charlotte facility could play a central role in what Siemens expects to be a prolonged boom in grid investment.
The company projects $2 trillion in upgrades will be needed for the U.S. power grid by 2050, driven in part by surging energy demand from data centers supporting artificial intelligence.
Siemens Energy generates over a fifth of its global revenue in the U.S. and employs about 12% of its 100,000-person workforce across several American sites. CFO Maria Ferraro said the company sees the U.S. as a strategic long-term market despite trade tensions and shifting policies.
The Charlotte expansion comes as Siemens prepares for changes in global trade dynamics. In May, the company said U.S. import tariffs could shave less $117 million off profits in 2025. Still, Ferraro emphasized stability: “The U.S. is a key market for us, and our commitment there remains strong.”
