PepsiCo is working with Siemens and NVIDIA to change how it designs, tests, and expands its plants and warehouses using AI and digital twins.

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The multi-year partnership was announced Tuesday at CES 2026 and is already being tested at several U.S. facilities. By modeling factories and distribution centers digitally before making physical changes, PepsiCo hopes to cut down on costly mistakes while improving speed and capacity.

With AI-driven digital twins, teams can simulate plant layouts, equipment movement, and supply chain operations in detail. Instead of expanding facilities the old way, which can be slow and expensive, they can test changes virtually and see what works before spending money on physical upgrades.

“The scale and complexity of PepsiCo’s business, from farm to shelf, is massive—and we are embedding AI throughout our operations to better meet the increasing demands of our consumers and customers,” said Ramon Laguarta, Chairman and CEO of PepsiCo. “Our work with Siemens and NVIDIA will help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight.”

The work is powered by Siemens’ Digital Twin Composer, built on NVIDIA Omniverse, which creates detailed 3D models of facilities. These models recreate machines, conveyors, pallet routes, and even worker movement, helping teams spot problems early and test different setups in weeks instead of months.

“Physical industries are entering the age of AI. For companies with real-world assets, digital twins are the foundation of their AI journey,” said Jensen Huang, founder and CEO of NVIDIA. “Working with NVIDIA and Siemens, PepsiCo is re-architecting its operations—using physically accurate digital twins and AI to reinvent how it designs, optimizes, and runs its global operations.”

PepsiCo says the early pilots are already paying off. By finding bottlenecks and unused capacity in a virtual setting, teams increased throughput by 20 percent at initial sites. The same approach has also shortened design cycles and helped cut capital spending by 10 to 15 percent.

“We are proud to partner with PepsiCo and NVIDIA to digitally transform their manufacturing facilities using physics-based digital twins and AI from design to engineering to operations,” said Roland Busch, CEO of Siemens AG. “This collaboration sets a new standard for all industries.”

For PepsiCo, the shift is less about flashy technology and more about better decision-making. By testing ideas digitally first, teams can plan ahead, compare options, and move faster without the usual surprises that come with physical expansion.

“We are deploying the first digital blueprint that reimagines how the supply chain is designed, built, and scaled, a first for the industry,” said Athina Kanioura, CEO, Latin America, and Global Chief Strategy & Transformation Officer of PepsiCo. “In this future, our facilities don’t just respond to demand, they anticipate and then adapt to it.”