Summary
- Siemens has more than €7bn of data centre products in its order backlog.
- Data centre revenue grew by more than 60% during fiscal 2026.
- Approximately 70% of outstanding data centre orders are expected to convert into revenue during fiscal 2027.
German engineering group Siemens has reported more than €7bn of data centre products in its order backlog, as investment in computing infrastructure drives demand for electrical distribution equipment, building systems, and associated technology.
The figure was disclosed alongside the company’s fourth-quarter and full-year financial results on 12 November.
Siemens reported quarterly orders of €34.8bn, up 58%, while revenue increased 11% to €23.7bn.
Industrial Business profit rose 22% to a record €3.9bn, supported by growth across its main industrial divisions.
Large contracts in Mobility and Smart Infrastructure contributed to the record order intake, with data centre customers providing substantial demand for electrification equipment.
Siemens said fiscal 2026 data centre revenue grew by more than 60%, reflecting the scale of investment in facilities supporting AI and other computing workloads.
Its financial disclosures distinguish between the value of products ordered and the revenue recognised as those products and services are delivered.
That difference is important when interpreting the backlog.
A confirmed equipment order reflects commercial demand, but does not establish that the associated data centre has been commissioned or that its proposed electricity requirement is already connected.
Siemens chief financial officer Veronika Bienert said approximately 70% of the company’s data centre backlog is expected to convert into revenue during fiscal 2027, with the remainder anticipated in the following year.
The company expects further strong growth in data centre revenue, potentially exceeding 40% in fiscal 2027 if delivery proceeds according to plan.
Those figures are management expectations rather than completed transactions.
The backlog also reflects the expanding scope of infrastructure required to support high-density computing.
Data centres depend on electrical systems capable of receiving, distributing, protecting, and monitoring substantial power loads.
Transformers, switchgear, circuit protection, power distribution, automation, and control systems must be coordinated with the facility’s cooling and computing architecture.
Large AI installations can place particularly demanding requirements on electrical equipment because high-performance processors may concentrate substantial loads within individual racks.
The resulting infrastructure must accommodate continuous operation while supporting maintenance, protection against faults, and appropriate resilience.
Siemens supplies equipment and technology across several parts of this system, including electrical distribution and building controls.
Its involvement is distinct from the semiconductor and server manufacturers supplying the computing hardware itself.
The demand for these supporting systems is also shaped by the increasing adoption of liquid cooling.
Liquid-cooled equipment still requires electrical distribution, pumps, heat exchangers, controls, and heat rejection infrastructure. Changes in cooling architecture can therefore affect the specification and installation of supporting facility systems.
The growing order backlog gives Siemens visibility over future equipment deliveries, but the timing of individual projects remains exposed to conditions beyond the supplier’s control.
Construction and delivery constraints
Electricity connections and planning permission can determine whether a data centre proceeds according to its intended schedule.
A developer may order specialist equipment well before completing network reinforcement, construction, or the technical approvals required for operation.
Delays to those activities can influence installation programmes and the recognition of revenue by infrastructure suppliers.
Siemens acknowledged the potential for order volatility when discussing grid access and permitting risks.
Management nevertheless described its wider project pipeline as robust and emphasised the need to coordinate equipment production with expected customer demand.
The company is increasing manufacturing capacity in several markets, including Germany and the United States, to support its electrification business.
Expanding production can reduce some supply constraints, but manufacturing capacity alone does not determine when individual data centres will become operational.
Network construction, site preparation, specialist installation, and commissioning must progress together.
Siemens reported that data centre demand was particularly strong in the United States and Europe.
It did not provide a breakdown allowing the entire €7bn backlog to be assigned to European projects.
The company’s broader fiscal results also reflect demand from industrial automation, mobility, and other infrastructure markets.
For fiscal 2026, Siemens reported total orders of €108.2bn and revenue of €83.4bn, with Industrial Business profit reaching €13.3bn.
Its updated medium-term comparable revenue growth target is 7% to 11%, compared with the previous range of 6% to 9%.
The outlook for fiscal 2027 anticipates comparable group revenue growth of 9% to 11%.
Data centre infrastructure is one contributor to that outlook, rather than the sole explanation for Siemens’ financial performance.
The company’s expectations now depend partly on how efficiently its outstanding equipment orders can be manufactured, delivered, installed, and recognised as revenue.
The backlog demonstrates substantial committed expenditure on supporting infrastructure. Conversion during the next two financial years will provide a clearer measure of how that demand is progressing through the industrial supply chain.
