(Reuters) - Schneider Electric said on Tuesday it plans to invest over $700 million in its U.S. operations over the next two years amid tariff threats that could affect the French electrical equipment maker.

The company said the investment, to be made through 2027, will focus on bolstering the U.S. energy infrastructure to power AI growth, boost domestic manufacturing and strengthen energy security.

Since his inauguration, U.S. President Donald Trump has announced tariffs on multiple commodities from aluminium to steel, and pharmaceuticals to semiconductor chips.

The looming threat has compelled companies including Eli Lilly, and Apple to expand manufacturing domestically.

Schneider will upgrade, expand and open several facilities across the U.S. including in Tennessee, Massachusetts, Texas, Missouri, Ohio, and North & South Carolinas as part of the planned investment. It also expects to create over 1,000 new jobs.

Coupled with the $440 million already announced since 2020 to strengthen its U.S. supply chain, the company's U.S. investment is set to surpass $1 billion this decade.

"We stand at an inflection point for the technology and industrial sectors in the U.S., driven by incredible AI growth and unprecedented energy demand," Aamir Paul, President of North America Operations for Schneider Electric, said in a statement.