Siemens Energy exceeds Q3 predictions on AI data centres boom and Middle East demand

Siemens Energy said that its sales, margins, and 'orders' hit records in the third quarter. This was boosted by the expansion of AI data centers in the United States, and the power plants in Middle East, which have increased demand for gas turbines.

Siemens Energy reported that its struggling Siemens Gamesa Division, which has been a "millstone" around the neck of the German Group for years, had made its first quarter operating profit in nearly four year, citing cost reductions and a higher capacity utilization.

Siemens Energy CEO Christian Bruch stated in a press release that "the fact that our business has returned profitably in a quarter, for the first time in 2022" is a fantastic accomplishment?by this group."

Siemens Energy shares have risen seven-fold in the last two years along with its U.S. competitor GE Vernova. This is due to the soaring demand for its grid equipment and gas turbines that power data centres required by AI technology.

The Iran war also prompted Middle East governments to demand 'power equipment', as they were eager to ensure power supply, given the vulnerability of the energy infrastructure.

GE Vernova is Siemens 'Energy closest competitor in terms of product. Last month, it cited increasing orders?related? to data centres? as a?main driver?of?quarterly?results, but also said that its wind business suffered losses. Reporting by Christoph Steitz, Editing by Emelia Matarise and Friederike Henne

(source: Reuters)