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Iran Conflict Adds to Global Gas Turbine Boom, Siemens Energy Says

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The conflict with Iran is emerging as a new driver of demand for gas turbines, adding to an order boom already fueled by the rapid expansion of data centers and artificial intelligence infrastructure, Siemens Energy executives said on Thursday, according to multiple media reports.

Alongside rivals GE Vernova and Mitsubishi Heavy Industries, Siemens Energy has seen a fresh wave of demand from Middle Eastern governments seeking to strengthen energy security following attacks on critical infrastructure, executives told reporters at a company event.

The new orders come on top of a large backlog generated by technology companies investing heavily in power-hungry AI projects.

"If you look at some of these countries, especially in the Gulf, you see that they are launching new tenders so that if a big power plant is down, they are not out," Reuters reported Karim Amin, head of Siemens Energy's gas services division, as saying.

Amin also said reserve power margins of about 15%, once considered sufficient, are no longer adequate as threats to energy infrastructure increase.

Despite disruptions to regional shipping routes, Siemens Energy has maintained deliveries by shifting some transportation to trucks. While the alternative has increased costs and transit times, "it did not stop the business," Amin reportedly said.

The company plans to continue expanding manufacturing capacity through 2030, but has limited ability to increase output further in the near term, Reuters reported Amin as saying. "We've already done everything we can," he said.

The tightening supply of gas turbines is becoming increasingly important for countries seeking gas-fired generation to support power systems with growing shares of intermittent renewable energy, Bloomberg reported.

It said data centers account for about 25% of Siemens Energy's turbine demand, while roughly 60% comes from traditional customers such as utilities. The company aims to maintain that balance while ensuring current orders generate long-term service revenues.

Siemens did not respond to a request for comment from.

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