Siemens Energy triples profit as AI boosts power demand
The German turbine maker's profit surged to €1.62 billion in the three months to the end of June, up from €497 million a year earlier.
German turbine producer Siemens Energy announced a tripling of its core profit in the three months to June, thanks to surging electricity demand driven by the artificial intelligence revolution. The company's profit soared to €1.62 billion ($1.87 billion) in the period, up from €497 million a year earlier, excluding one-off sales.
Order intake, a key indicator of future sales, jumped 8.5% to almost €18 billion, leaving an order backlog valued at €162 billion. Siemens Energy's chief executive, Christian Bruch, highlighted strong global demand for electricity and the company's record orders, revenue, and profitability. The International Energy Agency projects US data center electricity consumption to more than triple by 2035, currently accounting for 6% to 8% of US electricity use.
This growth has benefited Siemens Energy and other suppliers, including semiconductor maker Infineon, which recently secured multi-billion euro contracts with data center customers. Order growth in Siemens Energy's Gas Services division, which manufactures gas turbines, surged the most, jumping 62%.
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