Siemens Energy: The Iran war is driving demand for gas turbines and AI to further increase.

Siemens Energy executives stated on Thursday that the Iran war has 'become an additional driver for?demand of gas turbines.

Siemens Energy, along with its rivals GE Vernova, Mitsubishi Heavy Industries and others, has seen the demand for gas turbines increase as hyperscalers spend more than $700 billion on energy-hungry artificial intelligent, driving demand for new energy capacities.

Board members at a company meeting told reporters that Middle East governments are now supporting this trend which has?boosted the share prices of these firms in recent years'. They want to?ensure energy supplies due to attacks on their infrastructure.

Shipping? Obstacles won't stop turbine supplies

If you look at these countries - especially in the Gulf - you will see that they are constantly launching new tenders. Karim Amin who heads Siemens Energy's Gas Services division said that even if the power goes out, the company is not out.

Amin stated that the 15% reserve capacity, which is common in "a world where power plants are not targeted", wasn't enough?in view of the Iran conflict. He said this had led to a rise in turbine prices.

Amin stated that the company was able to switch from shipping to trucking in the region, adding that this cost and time increase did not affect the business.

Siemens Energy CEO Christian Bruch stated that data centres account for around a quarter (or around 100-120 Gigawatts) of the gas turbine orders backlog.

He said that the group was "firing on all cylinders" and planned to steadily increase its capacity until 2030, but had reached the limits of their ability to increase output in the near term.

He said, "We've done everything we could." (Reporting and editing by David Holmes; Reporting by Christoph Steitz)

(source: Reuters)