Siemens Energy CEO: Saudi Arabia can power AI faster than US

Summary

• Siemens Energy chief Christian Bruch said Saudi Arabia can electrify AI data centers faster than the United States.
• The German group is investing about $150 million to expand its Dammam hub and build a transformer plant.
• Speed of grid connection is becoming a decisive factor in where AI compute capacity gets built.

The latest

Saudi Arabia can supply electricity to artificial intelligence data centers faster than the United States, Siemens Energy President and CEO Christian Bruch told Asharq Bloomberg in an interview at the company's Dammam site. He credited the kingdom's upgraded grid and a coordinated plan for adding generation capacity, and said Saudi Arabia can deliver that power at what he called very competitive cost.

Details

• The claim: Asked directly whether the kingdom could energize data centers faster than America, Bruch answered yes, pointing to the distance Saudi Arabia has covered in developing its power system and to a coordinated mechanism for adding capacity under a defined plan.
• The investment: Siemens Energy is putting roughly $150 million into expanding its Dammam hub, adding 60,000 square meters and building a plant for large power transformers, plus about 130 to 150 additional jobs. The site is intended to serve Saudi demand and export markets.
• Why timing matters: Bruch said moving a data center's start-up date forward or back by six months can make a major difference in the AI race, given the continuing acceleration in AI and superintelligence development. That, he argued, makes speed of power delivery a competitive variable in itself.
• The transformer plant: The facility will be one of Siemens Energy's main transformer plants globally, serving the Saudi market and abroad, with a possible further expansion phase. Bruch gave no annual output figure, but said it covers large transformers for high-voltage networks including the 380-kilovolt transmission grid.
• Existing contracts: The company won a June 2024 contract to supply key technology for the gas-fired Taiba 2 and Qassim 2 plants with a 25-year service agreement, worth close to $1.5 billion and targeting about 2,000 megawatts per site. In March 2025 it announced a further $1.6 billion deal for Rumah 2 and Nairyah 2, totaling 3.6 gigawatts.
• Capacity squeeze: Turbine sales are booked out to 2032, Bruch said, though reshuffling production and balancing turbine classes could free slots. He said allocations for Saudi projects before 2030 are possible, depending on turbine type and size, component availability and supplier commitments.
• Localization logic: Bruch tied the industrial expansion to energy-system resilience against pandemics, shipping disruption and military conflict. Manufacturing near customers allows local quality testing, builds the workforce and supply chain, and speeds expansion or rebuilding. The Saudi team numbers around 1,000 people.
• Shipping and Hormuz: Regional conditions pushed the company to reroute some shipments originally planned through the Strait of Hormuz, Bruch said, without materially disrupting operations because alternatives were found. He said turning Dammam into a regional rapid-response base is a goal, targeting local handling of about 80% of cases.
• On Humain: Asked about talks with Humain, Bruch disclosed no specific agreements, but said he expects many future announcements in the kingdom of larger and more powerful computing capacity. He described Siemens Energy's role as sitting on the supply side, with operations handled by others.
• The Europe contrast: Bruch criticized hesitation over offshore wind decisions in Europe, saying it created a gap of three to four years despite company investment in plants and jobs. What he needs, he said, is clarity on environment stability: "Is there continuous demand? Is there a long-term strategy?"

Background

Siemens Energy's Saudi industrial footprint began with a gas turbine plant, then added compressors for the oil and gas sector, followed by a grid switchgear factory opened last year. The Dammam transformer plant is the next step in that sequence, according to Bruch.

Between the lines

Bruch's argument rests less on generation volume than on predictability: he described Saudi Arabia as a model in strategic infrastructure planning, with targets through 2030 translated into defined power requirements that let suppliers phase delivery. Set against the three-to-four-year European offshore wind gap he blamed on indecision, his message to Riyadh is that planning continuity, not capital alone, keeps factories and skilled workers in place.

What's next

Watch for grid connection of Rumah 2 and Nairyah 2 in simple-cycle mode in 2027, full combined-cycle operation the following year, and any announcement of Saudi turbine allocations before 2030.

Source: Asharq Bloomberg