The 23-year-old said: "I am delighted Carlos has come in. We needed to bolster the squad, particularly with our European aspirations as well as our domestic hopes this season.
"We want to do well in all competitions. If we went into the campaign with only five recognised defenders in myself, Zat Knight, Martin Laursen, Nicky Shorey and Luke Young, then it would have looked a bit light.
"I know he is Scottish Player of the Year and did well for Rangers when they got to the final of the UEFA Cup. You know if the manager pays that sort of money for someone that he will be a good player.
"I need to concentrate on my game, step up my performances and hope he doesn't take my place in the team."
Davies added: "There's more to come from Curtis Davies. In essence, I am still finding my feet a bit.
"I am just trying to defend properly at the moment - doing the bread-and-butter things - getting my head onto things and, if the ball needs kicking, it goes!
"I am sure once I have played a few more games, there will be an improvement."