Siemens Energy Triples Profit as AI Boosts Power Demand
The German energy group posted a €1.62 billion profit for the three months to end-June, lifted by surging electricity demand including from data centres.
Siemens Energy's profit surged to €1.62 billion (US$1.87 billion) in the three months to end-June, up from €497 million a year earlier, excluding one-offs such as last year's sale of a business in India.
Order intake – a measure of future sales – rose 8.5% to almost €18 billion for the quarter, the company said, leaving it with a total backlog of work worth €162 billion.
"Global demand for electricity – and consequently for our products – remained strong," chief executive Christian Bruch said in a statement. "We delivered record orders, revenue, and profitability," Bruch said.
Order growth was highest at Siemens Energy's Gas Services division, which makes gas turbines, where orders jumped 62%.
Electricity consumption at US data centres is projected to more than triple by 2035, according to the International Energy Agency, and already accounts for 6% to 8% of US electricity use.
The massive build-out has boosted suppliers like Siemens Energy as well as German semiconductor-maker Infineon, which announced alongside its own results on Wednesday the signature of contracts worth billions of euros with data centre customers.
Siemens Energy shares were up 3.7% in early Frankfurt trading and are up around 15-fold since 2023, when the German government had to step in with credit guarantees after quality problems at the company's wind-turbine unit.
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