Siemens to Arabic: We plan to expand manufacturing centers in Saudi Arabia to meet local and export demand

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President and CEO of Siemens Energy, Christian Brosch, emphasized that achieving a balance between energy security, cost, and sustainability requires a clear strategy and implementation plan that takes into account priorities and timing, as all goals cannot be achieved at the same time.

Brosh added, in an interview with Al Arabiya Business on the sidelines of the 25th World Petroleum Conference held in Riyadh, that the company established its first regional factory in Saudi Arabia and is working to establish other manufacturing centers to supply to markets outside the region.

He said that achieving a balance between energy security, affordability and sustainability represents a complex challenge that requires a clear strategy and long-term implementation plan, noting that not all goals can be achieved at the same time.

Brosh added that the energy sector's priorities must be built according to a deliberate timeline, starting with ensuring security of supplies and then working to integrate renewable energy sources and develop electricity networks.

He added that the transformation in the energy sector does not depend on one “magic solution,” but rather requires large investments in infrastructure and gradual implementation based on an applicable strategy, stressing that the complexity of the energy system is often underestimated.

Regarding the impact of artificial intelligence on the energy sector, Brosh said that the hype surrounding artificial intelligence leads many to overestimate its current impact on electricity consumption.

He explained that data centers related to artificial intelligence applications currently consume about 1.5% of electricity globally, and this percentage may rise to between 5% and 6% by 2030, which makes it an important element, but not the only source of growth in energy demand.

He added that other sectors, such as air conditioners and electric car batteries, also contribute to increasing global electricity consumption, noting the need to consider the impact of artificial intelligence within the broader picture of the energy market.

He said that the acceleration in energy demand to fuel artificial intelligence projects, especially in the United States, has led to great pressure on the supply chains of electrical generation equipment, especially gas turbines and electrical equipment associated with power plants and data centers.

He added that these pressures affected the availability of some equipment in the short term, but he does not expect these bottlenecks to continue for a long time, in light of the current expansion to add new production capacities in the turbine and electrical equipment sectors.

He expected these restrictions to gradually ease over the next four or five years as additional production capacities enter the market.

Regarding the company’s investments in the Kingdom, Brosh stressed that the Saudi market was the main motivation for establishing the company’s first regional manufacturing base in the Kingdom, but the future role of these facilities goes beyond meeting local demand.

He said that Siemens Energy currently exports compressors, turbines and electrical equipment from Saudi Arabia to various markets, noting that the company is working to establish additional facilities and manufacturing centers.

He added that the goal is to transform the Kingdom into a regional manufacturing center that serves foreign markets, in addition to supporting local industrial capabilities and enhancing the flexibility of supply chains within Saudi Arabia.

He stressed that the new investments will strengthen the Kingdom's position as a regional hub for energy-related industries, in line with the accelerating growth in demand for the equipment and technologies needed to support the global transformation in the energy sector.