President Donald Trump often says his policies are unleashing a new American factory boom, which reaches far beyond a few sectors like AI. His administration's shifting tariffs have also been blamed for holding back some factory expansions, which often depend on imported machinery. "This strategy is yielding results, from trillions in manufacturing investments to growing industrial output across key industries and sectors, including pharmaceuticals, steel, aluminum, and semiconductors," White House spokesman Kush Desai said.
One question is whether manufacturers can keep pace. Wood Mackenzie, a global consultancy, projects the electrical equipment market tied to U.S. data centers will surge from $33 billion in 2025 to $66 billion by 2030.
"Data centers are fundamentally different from any load the electrical equipment industry has supported before," said Ben Boucher, a senior analyst at Wood Mackenzie. Some companies are holding back on expansions, fearing the bubble might burst, even while they reap the benefit of having products in high demand. Boucher said manufacturers are already going back to customers with year-old purchase orders to impose 20% price increases just to maintain delivery schedules.
Siemens is among the electrical gear companies that are expanding. The German company announced earlier this month it would invest more than $200 million in two new plants in Georgia and Texas to produce equipment for data centers and other industrial customers.
Even smaller companies are feeling the power of demand from data centers. Southeastern Hose, a family-run company in Bremen, Georgia, that traditionally made corrugated metal hoses for steel and petrochemical companies has seen demand from data-center projects explode in the last few years.
Trey Travis, the company's vice president of operations, said that new demand has helped triple the company's revenue in the last five years. Southeastern Hose has added 60 workers and now employs .
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