DAVOS, Switzerland (Reuters) – Siemens Energy sees a “massive tailwind” from Donald Trump’s power strategy, its chairperson said on Wednesday, after the new U.S. president announced up to $500 billion of private sector investment to fund infrastructure for artificial intelligence.
Joe Kaeser, who chairs Siemens Energy’s supervisory board, said the power equipment maker was “in the sweet spot” with regard to its presence in the United States.
On the sidelines of the World Economic Forum annual meeting in Davos, Switzerland, Kaeser said the rise in demand for data centres, which are key to AI technology, as well as the reliable energy capacity needed to power them, had “brought a boom to all energy companies, which is second to none”.
Shares in Siemens Energy, which makes everything from gas and wind turbines to power network equipment and transmission technology, hit a fresh record following the comments and were the top gainers among German blue-chips, up more than 9%.
Trump late on Tuesday announced the investment of up to $500 billion, fuelling hopes that providers of energy network equipment will benefit from the boom in the power-hungry AI sector.
“I think the new administration has made it very clear that this is the new energy age,” Kaeser said, adding this would play into Siemens Energy’s hands and that the next 5-10 years would be a very good time to be based in the U.S. market.
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(Reporting by Divya Chowdhury and Christoph Steitz. Editing by Matthias Williams and Mark Potter)
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