The growing number of data centers across the U.S. is being credited for a 9% gain in revenue for Germany energy technology company Siemens Energy.
Here’s why it’s important in the world of data centers and natural gas.
While Siemens is based in Germany, it is a well-known company for its manufacture of wind farm turbines and until 2022, had manufacturing plants in Kansas and Iowa. Back then, a slump in orders led to the closings. But Siemens turbines are in use throughout Oklahoma’s dozens of wind farms.
Now, Siemens is experiencing a major increase in revenue because of natural gas, the power of choice for many data center operators who have a large demand for more electrical power. The company said strong demand in the United States was a major growth driver, particularly for gas turbines tied to power demand from data centers and expanding electricity infrastructure. Siemens Energy’s order backlog reached a record €154 billion, with a book-to-bill ratio of 1.72.
As a result, Siemens Energy also raised its full-year guidance after it reported quarterly orders of €17.7 billion for the three months ended March 31, up 29.5% on a comparable basis, while revenue climbed 8.9% to €10.3 billion. Profit before special items rose to €1.16 billion from €906 million a year earlier, and net income increased to €835 million reported OilPrice.com.
Siemens CEO Christian Bruch said there was a “strong market momentum” for the company despite uncertainty around the globe.
The company’s Gas Services division had its highest quarterly intake on record with orders rising to 8.87 billion euros, a benefit from the demand tied to U.S. data centers.
Oilprice.com reported Siemens Gamesa, the company’s wind turbine subsidiary, continued its turnaround, narrowing its quarterly loss significantly. The company went from a loss of 249 million Euros last year to a negative 44 million Euros this year.
Based on the strong first-half performance, Siemens Energy now expects comparable revenue growth of 14% to 16% for fiscal 2026, up from prior guidance of 11% to 13%.