< Previous28 JULY 2025 SITE SELECTION services (+100.5%), biopharmaceuticals (+63.8%), aerospace equipment (+42.5%), and medical instruments (+12.4%). Exporting Innovation In addition to the new focus on investing in emerging industries, an increasing number of foreign companies are establishing R&D centers in China, not just manufacturing facilities, as they tap into the country’s advanced industrial ecosystem to drive R&D that supports both domestic operations and global competitiveness. Volkswagen Group, for instance, launched its largest R&D center outside Germany in Hefei in 2023, and doubled down with a €2.5 billion expansion in 2024. Siemens followed suit, opening its Shenzhen Motion Control Innovation Center in June 2024 to pioneer next-gen technologies for international deployment. U.S.-based Cargill upgraded its Shanghai Innovation Center with a $4 million investment, positioning the facility as a regional innovation anchor for Asia-Pacific markets beyond China. Meanwhile, Procter & Gamble expanded its Beijing Innovation Center to enhance global collaboration and export cutting-edge consumer products born in China to worldwide markets. Similarly, BASF inaugurated its new Asia- Pacific Application Center in Guangdong in 2024, designed as a bridge between local manufacturing and global product development. These examples illustrate a clear trend: China is increasingly seen as a base for global innovation. Contributing factors include its vast consumer market, strong infrastructure and rapid product development cycles. The 2024 Global Innovation Index ranked China No. 11 globally, and the country became the first in the world to surpass 4 million valid patents, reaching 4.76 million. In addition to saluting No. 10 Shanghai, No. 17 Shenzhen and No. 23 Hangzhou, the Global Startup Ecosystem Report 2025, released in June, highlighted fast-rising emerging startup ecosystems in Nanjing and Wuxi, which the report named the No. 1 emerging ecosystem in part because of a 67% increase in exits over $50 million. The country’s talent pool is another key advantage. China produces more STEM graduates than any other nation, and its universities are rising in global rankings. Multinational companies are strengthening partnerships with local academic institutions and innovation parks to co-develop technologies and access specialized talent. As Schneider Electric Senior Vice President Hu Xiao, head of the China Industrial Automation Hub, explained: “Schneider Electric’s R&D efforts closely follow its business development. In China, every business unit is equipped with its own R&D center. Product iteration in China is the fastest, cost requirement is the lowest and delivery speed is the quickest. If a product can succeed in the Chinese market, it is likely to be competitive in the global market as well.” There Is No Second China China remains a key destination for value-added investment, underpinned by stable and proactive government policies. In early 2025, China’s Ministry of Industry and Information Technology (MIIT) announced it would implement the 2025 Action Plan for Stabilizing Foreign Investment, which supports the establishment of R&D centers, encourages co-development with local firms and promotes foreign participation in digital and green transformation efforts. Priority areas include smart factory development, clean manufacturing and localization of advanced technologies. The government has also expanded preferential tax treatments, simplified investment procedures in targeted sectors and increased the number of pilot free trade zones. At the local level, municipal authorities offer tailored incentives to attract and retain foreign investors. These supportive measures are translating into renewed business confidence. According to the latest survey earlier this year by the Japanese Chamber of Commerce and Industry in China, more than half of the responding companies indicated that they plan to either increase or maintain their investment in China in 2025. Similarly, the 2024-2025 survey report from the British Chamber of Commerce in China shows that 76% of British companies operating in China intend to maintain or expand their investments. For global investors, the question is no longer whether to stay in China but how to create more value through innovation, integration and long-term engagement. In many boardrooms, the consensus remains: The “next China” is still China. Tractus Senior Research Analyst Miranda Dai is based in the firm’s Shanghai office. Tractus has 30 years of experience supporting global companies with market entry, site selection and implementation across Asia. Visit tractus-asia.com for more information.30 JULY 2025 SITE SELECTION WORLD REPORTS by ALEXIS ELMORE alexis.elmore@siteselection.com Tropical Logistics Growth I nternational logistics company DP World is establishing a new free trade zone at the Port of Caucedo in the Dominican Republic. The FTZ will encompass over 555 acres at the port, whose presence will increase current twenty-foot equivalent unit (TEU) capacity from 2.5 million to 3.1 million. Under the signed Memorandum of Understanding, DP World will invest $760 million in the project, spending $380 million on port expansions and $380 million to prepare the FTZ site. “By boosting capacity and enabling nearshoring opportunities, we will transform Caucedo into the most advanced logistics hub in the Caribbean,” said DP World Chairman and CEO Sultan Ahmed bin Sulayem, “not only strengthening supply chain resilience across the Americas but also creating a powerful engine for economic growth and job creation in the Dominican Republic.” Demands Covered in Singapore I n May 2025, leading polyisoprene rubber latex manufacturer Carifl ex offi cially inaugurated its new $355 million Singapore production facility. The investment supported the build-out of the world’s largest polyisoprene latex plant, covering the company’s 15-acre site. This facility will aid in meeting increased demand for synthetic latex in Southeast Asia, used in medical gloves, adhesives and laminates. “We have strategically located our new facility here in Singapore, at the doorstep of our key customers,” said Carifl ex CEO Ryu Sang Woo. “Singapore’s thriving fi nancial, innovation and logistics hubs, along with a highly skilled workforce and strong IP protection, made this the ideal choice for our investment.” In preparation for future growth, the facility has been designed for modular expansion. The new Carifl ex production facility created 80 new jobs in the region. Photo courtesy of Carifl ex For over 25 years, Dubai-based DP World has continued to expand its Port of Caucedo operations in the Dominican Republic. Photo courtesy of DP World 1. London, United Kingdom 2. Paris, France 3. Berlin, Germany 4. Barcelona, Spain 5. Rome, Italy 6. Madrid, Spain 7. Amsterdam, Netherlands 8. Vienna, Austria 9. Prague, Czech Republic 10. Stockholm, Sweden Source: Resonance Consultancy, May 2025 Resonance: Europe’s Best Cities 2025 Top 10 SITE SELECTION JULY 2025 31 Time To Build I n June 2025, Hyperloop Transportation Technologies announced completion of a feasibility study as part of the company’s greater plan to construct the world’s fi rst commercial hyperloop system in Italy. The high-speed transportation system will connect Venice and neighboring Mestre to the northern Italy city of Padua. The project will now move into construction of its fi rst test track that will span 6 miles between Padua and Venice. The goal is to assess the eff ectiveness and safety of every aspect of this technology, which has been in development for over a decade. Each passenger capsule can support up to 38 passengers, while cargo capsules can hold up to 12 tons. HyperloopTT’s systems are expected to signifi cantly reduce the region’s traffi c, energy consumption and emissions produced by vehicles. Italy is moving forward with innovative high-speed transportation system infrastructure development in the Veneto region. Photo courtesy of HyperloopTT Foxconn Shifts Chips to India I n an eff ort to ease challenges associated with new tariff s placed on China- made goods, Foxconn has decided to increase activity in India. The electronics manufacturer received approval from the Indian government in May 2025 for a $433 million joint venture semiconductor facility. Partnering with India-based information technology company HCL Group, the company will construct the plant in the northern state of Uttar Pradesh. Once complete in 2027, the facility will produce display driver chips used in products such as phones and computers. Foxconn is one of Apple’s key suppliers and the new facility will support the company global supply chain. The company anticipates the facility will have a production capacity of 20,000 wafers and 36 million display driver chips per month. Experts note that India could become responsible for 15% to 20% of total iPhone production, up from 10% to 15% currently. Photo courtesy of Foxconn 1. Frankfurt, Germany 2. London, United Kingdom 3. Tokyo, Japan 4. Amsterdam, the Netherlands 5. Singapore 6. New York City, New York 7. Hong Kong 8. Washington, D.C. 9. Paris, France 10. Los Angeles, California Source: TeleGeography, June 2025 TeleGeography’s Top 10 Most Connected Cities for Internet Infrastructure32 JULY 2025 SITE SELECTION Dominating International Breezeways I t’s hard to doubt the power of a cool breeze. Scouting the world’s blustery breezeways has resulted in over , gigawatts (GW) of total cumulative wind energy capacity installed across every continent. Yes, Antarctica included. In , fi ve countries — China, the United States, Germany, India and Brazil — were responsible for the majority of new wind turbine installations. China led with , megawatts (MW) or GW, nearly times the totals in the United States (, MW) and Germany (, MW). As a whole, the global industry set a record installation high by introducing GW of new capacity, according to new data released by the Global Wind Energy Council. “Once again, the wind industry has broken new installation records, despite more challenging macroeconomic headwinds over the last few years,” said GWEC CEO Ben Backwell. “While wind energy continues to drive investment and jobs, improve energy security and lower consumer costs, we are seeing a more volatile policy environment in some parts of the world, including ideologically driven attacks on wind and renewables and the halting of under-construction projects, threatening investment certainty.” While the U.S. has found its way up the ranks, the Trump Administration could throw a wrench in the works of the nation’s industry. Empire Off shore Wind LLC, which is currently in the midst of constructing a $ billion off shore wind farm off the coast of New York, was forced to halt project activity for an entire month until a stop work order was lifted following environmental reviews made by the U.S. Department of Interior’s Bureau of Ocean Energy Management in late May . e move came as a shock to the industry since Empire Wind was already in motion with the required permitting, contradicting an executive order signed by President Donald Trump in January to cease leasing areas on the Outer Continental Shelf for new wind energy projects. As of now, work has resumed on the MW project, which is expected to power , homes in the state by late . Moving forward, lingering uncertainty felt by developers and potential tariff impacts may very well spell trouble for the nation’s off shore wind portfolio. by ALEXIS ELMORE alexis.elmore@siteselection.com OFFSHORE WIND In April 2025, EnBW launched the fi rst of 64 planned wind turbines in the North Sea. Photo courtesy of EnBW/Weltenangler34 JULY 2025 SITE SELECTION The European Perspective However, we can expect a boost in onshore wind projects to hit the international pipeline in years to come, as auctions and other procurement mechanisms doubled over the course of . Europe led this activity, awarding GW of onshore wind volume, up % from the year prior. While this data is promising onshore, Europe’s wind industry is looking to European governments to auction a minimum of GW of off shore wind installations by . WindEurope, an association of more than wind industry members across over countries, released a new wind deal proposal in April . e initiative aims to expand off shore wind opportunities, noting poor auction design practiced across Europe for the past decade. is problem became prevalent as energy concerns raised by geopolitical tensions bubbling between Russia and Ukraine led to ambitious project approvals that bore more market challenges and economic uncertainty than anticipated for developers. “What should have been the platform for accelerating off shore wind has instead led the industry into a negative spiral, which holds a real risk of industry stagnation and that even awarded European projects will be cancelled as we have seen in the U.S.,” the report notes. “Analysts also assess that more than % of the European projects in the current environment are at risk of being delayed and/or cancelled, which will have detrimental consequences for not only the off shore wind industry, but for Europe’s energy future.” To take a fresh approach to future off shore wind installations, WindEurope has highlighted two critical priorities: committing to at least GW of Contracts for Diff erence over the next years with fi rm political commitment through fi xed price and indexed contracts; and planning fl exible project commissioning deadlines to evenly introduce GW per year from to to create market predictability through cross-border planning while optimizing supply chain utilization and investments. e new deal is backed by industry heavyweights such as Energie Baden-Württemberg (EnBW), GE Vernova, Ørsted, Siemens Energy and Vestas, who hope to collaborate alongside government offi cials to cultivate a framework that increases de-risked and commercially viable capacity while also reducing costs associated with off shore wind projects. In return, the industry has promised to deliver capital for investments and job creation, reduce cost of electricity by % into and create lasting community value through its economic activity. If European governments take heed of the proposal, WindEurope sees an avenue to restore investor confi dence, raise industrial competitiveness and ultimately reduce electricity costs for millions. It Spins Regardless of what’s to come, Energie Baden- Württemberg (EnBW) AG has set out in the North Sea with plans to establish Germany’s largest off shore wind farm. Just shy of one year since work began, EnBW announced that construction of its fi rst wind turbine is now complete. Dubbed “He Dreiht,” which translates to “It Spins,” the transformative $. billion project will be the company’s third wind farm initiative in the North Sea. EnBW has located He Dreiht adjacent to its established Hohe See and Albatross wind farms, positioned about miles northwest of Germany’s island of Borkum. “EnBW has been planning, building and operating off shore wind farms in Germany and Europe for over years. EnBW He Dreiht is our largest off shore project to date and is being built without state funding,” said EnBW Head of Generation Portfolio Development Michael Class. “It will play a key role in helping us to achieve our goal of signifi cantly increasing installed output from renewable energies from the current fi gure of . GW to over GW by .” Introduction of the fi rst of total wind turbines planned for He Dreiht marks the fi rst application of the world’s largest -MW wind turbine currently available from Denmark-based manufacturer Vestas. For context, a single rotation of the robust Vestas V- turbine creates enough electricity to power four homes for an entire day. Each massive turbine showcases how crucial global industry collaboration is to the success of this off shore wind technology, as each component from blades to monopile to tower originates from a diff erent European country. Once all turbines are installed the farm will have an output of MW, or enough power to supply . million households, increasing EnBW’s off shore wind portfolio to MW by . EnBW has been planning, building and operating off shore wind farms in Germany and Europe for over 15 years.” — Michael Class , Head of Generation Portfolio Development, EnBW EnBW has been planning, INVESTMENT PROFILE: TENNESSEE VALLEY AUTHORITY THE WAY FORWARD N uclear energy is back. e more than million people in seven states served by the Tennessee Valley Authority know this better than most. Start in the public power provider’s namesake state, home to nuclear- related companies, of which are located in the Oak Ridge-Knoxville region. ose companies are part of a $ billion advanced energy sector that the Tennessee Advanced Energy Business Council says employs more than , Tennesseans. Talk to the target market specialists on TVA’s economic development team and they’ll tell you that’s only the beginning of the opportunity ahead. “TVA Economic Development evaluates our target markets every three years to make sure we are aligned with our region’s assets, workforce and leadership to create new economic opportunities in the Valley,” says Adam Murray, TVA’s target market specialists manager. “ e energy sector was added as one of those targets in . In the last three years, TVA has seen a large increase in the number of nuclear-related projects considering the Valley. A lot of those projects have been focused in the Oak Ridge area, but as we recruit nuclear projects further along the nuclear supply chain, we are seeing growing interest in other parts of the TVA region.” “When the energy sector was identifi ed as a target market, we knew that with available sites, existing workforce and the TVA region’s energy IQ in the sector, our territory would be competitive in this area,” says Meryl Harris, the target market specialist hired in to oversee eff orts in the sector. “Tennessee’s leadership in the nuclear space has been integral to the nuclear wins in East Tennessee and we have seen signifi cant growth in building out the nuclear supply chain related to SMR manufacturing, fusion pilot plants and enrichment of nuclear fuel.” Growth opportunities extend to all parts of TVA’s region and all facets of the energy sector. But with the May submittal to the U.S. Nuclear Regulatory Commission of the nation’s fi rst construction permit application for a GE Vernova Hitachi Nuclear Energy BWRX- small modular nuclear reactor (SMR) at its Clinch River site near Oak Ridge, TVA’s leadership in nuclear power is front and center. A Talk with Two Chiefs at focus is also evident across the -year career of Don Moul, appointed president and CEO of TVA in April SITE SELECTION JULY 2025 35 by ADAM BRUNS adam.bruns@siteselection.com From nuclear power to the power of collaboration, the Tennessee Valley Authority leads by example. TVA on May 20, 2025, submitted to the U.S. Nuclear Regulatory Commission the nation’s fi rst construction permit application for a GE Vernova Hitachi Nuclear Energy BWRX-300 small modular nuclear reactor (SMR) at its Clinch River site near Oak Ridge. Rendering and photos courtesy of TVA36 JULY 2025 SITE SELECTION by the TVA board of directors. A former senior reactor operator at a number of nuclear stations and the former chief nuclear offi cer at NextEra Energy, Moul most recently served as TVA’s executive vice president and COO. In addition to leading eff orts to modernize TVA’s system, build new power generation assets and drive advanced nuclear technologies, he also has overseen mission-critical areas of TVA’s business such as the -dam, integrated river system and eff orts to protect the region’s natural resources, including , acres of public land and , miles of shoreline. Here Moul speaks to the opportunities and challenges ahead, and how community engagement and collaboration are as central to power provision as they are to the economic development that power enables. He was joined by TVA Senior Vice President of Economic Development John Bradley, leader of a team that perennially earns Site Selection’s Top Utilities in Economic Development honors. You know the operational side of the TVA fl eet and network of power and water systems better than anyone. What are those systems’ most under- appreciated aspects when it comes to competitive power, economic development and quality of life? Don Moul: One of the things I’ve learned through my career is how valuable a diverse generating fl eet is. We have one of the largest, most reliable systems out there. We are the third largest generator of electricity in the country, with more than , miles of transmission lines. at diverse portfolio strengthens that system. When I think about some of the foundational assets, I start with hydro — that was the foundation of TVA from the very beginning. It makes up about % of our portfolio and nuclear makes up about %. ose are some of the most reliable, dispatchable, high-quality and cost-eff ective assets out there. We complement that with the coal and gas fl eet that makes up another to % of the portfolio. en % of the remainder are the renewables that are on the system. What that does for us is it gives us that solid, foundational baseload generation. It helps us keep our industrial rates low. at’s a huge competitive advantage to our region and helps meet part of our mission, which is economic development. John Bradley: We are self-regulated. at does make a diff erence to the companies we are recruiting. ey see that as an advantage because it’s really like a self- secured system. Moul: How we operate the system is really guided by the least-cost planning principles outlined in the TVA Act [of ]. While we don’t have a PUC or public service commission we have to work through, we still have the right kind of customer-focused guidance. Part of our mission is aff ordable energy, then environmental stewardship and economic development. We call them “the three Es.” How does your deep background in nuclear power inform your perspective on leading TVA and its economic development programs? Moul: Growing up as a nuclear engineer by degree but also a licensed operator, you are really trained in a culture of continuous improvement. It’s just part of your fabric. We also focus a lot on situational awareness — seeing what’s around us and being able to be agile to check and adjust. at’s critical in a rapidly changing environment. I don’t think I’ve seen an environment changing as rapidly as the markets right now. Artifi cial intelligence, quantum computing, advanced manufacturing — all of those things are really changing the landscape. So, building that culture of continuous improvement, having that mindset all of my training and decades of experience have given me, helps me guide the TVA organization and great leaders like John and my direct report teams to be able to be as responsive and rapidly changing as the environment around us. You serve on the Tennessee Nuclear Energy Advisory Council. Would other states also be wise to create nuclear power-related incentives as Tennessee has done with its Nuclear Energy Fund? Moul: Governor [Bill] Lee was really forward-thinking in forming the advisory council and backing it up with the Nuclear Energy Fund. It’s so critical. It puts tools in the toolbox for economic development for the state. And you can see it’s paid dividends with some of the largest developments in that nuclear ecosystem coming to the Tennessee Raccoon Mountain Pumped-Storage Plant near Chattanooga, TVA’s largest hydroelectric facility, pumps water from Nickajack Reservoir when demand for power is low, then releases it during periods of high demand, generating up to 1,600 megawatts. SITE SELECTION JULY 2025 37 Valley region. I can’t speak for other states, but it shows a success path that certainly could be replicated. Tennessee is leading the nation thanks to what Gov. Lee has done. e Clinch River project is very exciting and we’re ahead of most folks in the nation with our processes and where we are with the construction permit application being submitted to the NRC. But my focus on that advisory council was to also make sure we thought beyond just one project. ere was a focus on supply chain and workforce development that is so critical for driving the economy of the Tennessee Valley region and the State of Tennessee. e state took those recommendations and really ran with them. We have closely followed the growing potential of SMRs to be part of the solution to satisfy demand from the power-hungry data center sector. What are your thoughts about the proliferation of data centers and the solutions needed to keep up with demand? Moul: A consistent challenge and question I get as the new CEO at TVA is “Hey, what can we do to get more power and what can we do to get it faster?” Some of it is the rise of big tech in the s and s. e Tennessee Valley region, because of abundant energy generation and aff ordable land, was very attractive because we were long on generation. So data centers and other companies with substantial and unique energy requirements were fi nding the Valley to be very attractive. But we’re not in the same position as we were in when manufacturing rates were available to the data centers. With all of these large new loads, we’re going to have to consider not only building additional generation but also transmission to help deliver and serve that load. It’s an especially tricky consideration given that customers like data centers can scale up their load much faster than TVA, or anyone else in the nation for that matter, can build to serve it. is puts pressure on rates and diff erent risks for all of our customers and rate payers. We had direction from our board of directors several months ago, and TVA is now in the process of exploring ways to provide a more fair treatment to all rate- paying customers by possibly removing the manufacturing rate eligibility for some of the data centers and by defi ning a commercial policy that allows TVA to develop customized pricing products for some of these new and existing large, unique customer loads. We’re going to explore all of these in partnership with the local power companies and direct-serve customers and the impacted customers to make sure we have appropriate treatment among all the rate payers. John can back this up: What used to be an incredibly large load — say megawatts coming in — that was a banner day about fi ve years ago. Now it’s coming in hundreds to a thousand megawatts at a clip because of the insatiable demand of some of these data centers and what they’re going to need. So we’re trying to fi nd ways to be very creative and work with them, get them off the peaks and make sure we have the right rate structure that has the proper incentives and meets that least-cost planning criteria for all of our customers, so we don’t have customers on the retail side subsidizing these large data centers. Bradley: ink about this: We’re roughly a ,-megawatt system. Right now we’ve got , megawatts of request with AI, data centers and crypto alone. at’s why it’s going to take diff erent solutions to be able to serve these types of loads. We’ve never seen that many megawatts as request in our system. It is unprecedented. When Don talks about major loads ... some of these loads coming in could take up a nuclear plant themselves. is is not unique to TVA, it’s something everyone is experiencing across the United States. is is the most dynamic I’ve ever seen the utility industry in my career, but it’s also the most disruptive. It’s going to take some creativity from utilities and the people we’re supplying energy to to work together in true partnerships. Moul: One example is xAI coming into West Tennessee. ey have been incredible partners to work with and a very diffi cult ask: megawatts of load. For all the new loads, we have to really carefully review the details of each proposal and its associated demand on our system. It’s not just like putting a plug into the wall. ese discussions include: Can you maximize your demand-response opportunities? at provides fl exibility when we hit peak demands. Late last year, our board approved the request to add We believe deploying new nuclear is essential to providing American families and businesses aff ordable and abundant electricity for decades to come.” — Don Moul , President and CEO, Tennessee Valley Authority We believe deploying new nuclear is Next >