Following a corporate event in Hamburg on June 11, 2026, Siemens Energy anticipates strong demand for gas turbines through 2035. This surge in the gas sector is driven primarily by AI data centers in the US and new power plant projects in the Persian Gulf. At the same time, Gulf states are securing their power supplies against potential attacks on power plants. However, transportation issues in the Middle East are driving up delivery costs. Siemens Energy has little scope to further increase production in the short term; consequently, customers must expect long lead times and rising equipment prices.
Gas boom fills order books at Siemens Energy
US technology companies are investing more than $700 billion in artificial intelligence. This requires new data centers, even as their power consumption rises sharply. Consequently, many operators are turning to their own gas-fired power plants or ones located nearby. These facilities supply electricity regardless of the weather or time of day.
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Data centers already account for around a quarter of Siemens Energy’s gas turbine order backlog. At the same time, the US represents approximately 40 percent of the global turbine market. According to CEO Christian Bruch, the global market currently stands at 100 to 120 gigawatts. The surge in gas-related demand is thus heavily concentrated in the US electricity market.
Conflict Involving Iran Alters Power Plant Planning in the Persian Gulf
The conflict involving Iran is also driving demand for additional generation capacity. Several Gulf states are tendering projects for new power plants to ensure that isolated attacks do not cripple entire supply systems. Previously, a capacity reserve of around 15 percent was considered sufficient; however, Siemens Energy assesses that this level of reserve is no longer adequate given the new security conditions.
The military situation is also complicating the transport of heavy turbine components. Consequently, Siemens Energy is shifting some deliveries from ships to trucks. These routes are more expensive and take longer, though the company has managed to continue its deliveries so far.
Factory Capacity Limits Growth Through 2030
Siemens Energy is already operating at the limits of its short-term production capacity. Consequently, the company plans to gradually expand its manufacturing capabilities between now and 2030. Additionally, a US investment program aims to boost global turbine capacity by approximately 20 percent. However, new plants will not immediately resolve current supply bottlenecks.
At the same time, high demand is improving the company’s financial position. In the 2025 fiscal year, Siemens Energy sold a total of 194 gas turbines. Order intake for the Gas Services division rose by a comparable 42.9 percent, and the company-wide order backlog reached a record high of €138 billion.
The gas boom secures a pipeline of predictable orders for Siemens Energy for years to come. However, costs for power plant developers are also rising significantly. Delivery times for large gas turbines can exceed five years, and construction costs for modern combined-cycle gas power plants in the US have risen sharply. While new gas power plants provide reliable capacity, they also lock electricity markets into long-term dependencies on fuel supplies and gas prices.
Author: Blackout News
Sources: Handelsblatt (11.06.26) – Reuters (11.06.26) – SupplyChainBrain (12.06.26) – Financial Times (09.06.26)