IEM plans $200 million San Antonio power equipment factory
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Industrial Electric Mfg. plans to invest $200 million in a new advanced manufacturing facility in San Antonio, Texas, as demand grows for equipment used to distribute power across data centers, healthcare sites, energy projects and factories.
The 1 million-square-foot facility at Brooks in southeast San Antonio is expected to create up to 3,000 jobs by 2030. Roles will include manufacturing, engineering, logistics and corporate support. The average annual salary is expected to be about $53,000, according to Greater SATX.
The project is the largest job-producing investment in the San Antonio area in more than 20 years. It also gives IEM a larger US production base as customers invest in power-intensive facilities and the systems needed to operate them.
IEM produces switchgear, switchboards, remote power panels and other power distribution and control systems. These products manage how electricity moves through large commercial and industrial sites. The company already has North American manufacturing operations in California, Florida and British Columbia.
The San Antonio plant will be developed in phases. IEM has not released a detailed construction or hiring schedule.
Rising electricity demand is putting power equipment manufacturers under pressure
The investment points to a wider issue for companies building energy-intensive facilities. Access to electricity is only one part of the requirement. Developers also need equipment that can safely distribute and control that power once it reaches a site.
That makes electrical equipment manufacturing an important part of industrial expansion.
IEM has added more than 3 million square feet of product development and manufacturing space during the past five years, including the planned San Antonio facility. Its investment over that period totals $300 million.
The company says the additional capacity is intended to meet customer demand, strengthen its domestic supply chain and reduce order-to-delivery times.
Delivery times matter because electrical equipment can affect when a completed building becomes operational. A factory or data center cannot fully use available power if the equipment needed to control and distribute it is delayed.
For manufacturers such as IEM, this is creating demand for more production capacity. It also puts pressure on suppliers to expand while meeting the engineering needs of large industrial projects.
The Texas government is supporting the San Antonio project with a $3.36 million Texas Enterprise Fund grant tied to 448 jobs. Bexar County commissioners also authorized negotiations over a proposed 10-year tax abatement estimated at $1.55 million while IEM was considering expansion locations.
Texas data center growth is increasing the stakes for electrical infrastructure
Data centers provide one of the clearest examples of why demand for power equipment is rising.
Texas had 405 operating data centers as of October 2025, with another 442 planned or under construction, according to an industry analysis cited by Axios. Only Virginia had a larger concentration.
That pipeline represents a major requirement for electrical infrastructure. Data centers need substantial grid connections, but they also depend on switchgear, control systems and other equipment inside their facilities.
The expansion is creating economic opportunities while raising concerns about electricity demand, water use and infrastructure costs.
Texas Gov. Greg Abbott has called for tighter oversight of data centers as the state considers how their expansion could affect electricity customers and the grid. San Antonio officials are also discussing new local rules for data center development. The city has at least 23 operating data centers, according to Axios.
This creates a difficult balance for Texas. The state stands to gain investment and employment from data infrastructure, but officials must also assess how much additional demand the power system can support.
For electrical equipment manufacturers, the wider trend still points toward more demand for power infrastructure. New data centers require distribution equipment, while grid upgrades can create further demand for electrical systems.
More US production could ease an infrastructure bottleneck
IEM’s decision to add manufacturing capacity in Texas also reflects efforts to place more industrial production closer to US customers.
The company says the San Antonio investment will strengthen its domestic supply chain and support customers across North America. That could matter for industries where construction schedules depend on specialized electrical equipment arriving at the right stage of a project.
The importance of the project therefore extends beyond the 3,000 planned jobs.
Large energy, manufacturing and digital infrastructure projects depend on networks of suppliers that receive less attention than the facilities themselves. Power distribution equipment is one part of that network.
San Antonio gains a major advanced manufacturing employer from IEM’s investment. IEM gains access to a Texas workforce, logistics network and growing customer base. The wider market gains another source of US manufacturing capacity for equipment needed to support industrial development.
As investment in data centers, energy projects and advanced factories continues, access to reliable electricity will remain a major consideration. The availability of the equipment needed to distribute and control that power will matter as well.
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