Siemens Energy records highest order backlog

Siemens Energy reports a historic order backlog driven by the increasing need for electricity from data centres.

Siemens Energy posts record orders amid booming data centre demand

Siemens Energy has reached a record order backlog of nearly €136 billion, largely fueled by high demand for electricity from data centres in the US. This increase has allowed the company to predict revenue growth between 13 and 15 percent for the year. Chief executive Christian Bruch emphasized that data centres are responsible for about 60 percent of their gas turbine orders. The need for energy is not just driven by AI advancements but also by aging electrical infrastructure and the push towards electric vehicles and heating systems powered by renewable sources. The company’s shares, although previously impacted by issues related to the performance of its wind turbines, have rallied significantly this year. Siemens Energy also announced its highest quarterly intake of orders, contributing to the significant backlog.

The surge in orders at Siemens Energy highlights a crucial market shift toward renewable and reliable energy sources, spurred by technological advancements and regulatory pressures. As global energy demands escalate, the focus on data centres signals a pivotal change in priorities within the energy sector. This boom, however, is not without challenges. US tariffs and trade agreements have complicated operations, and the company has had to navigate a recovery following technical setbacks earlier this year. The pressure to meet growing demand while managing regulatory landscapes will test Siemens Energy's adaptability and long-term strategy.

Highlights

Siemens Energy's ability to adapt to changing market demands will be critical for future growth.