Xcel Energy to buy natural gas turbines from Siemens Energy for two new Texas power plants

[Electricity transmission towers with red glowing wires]
peterschreiber.media/iStock via Getty Images

Xcel Energy (NASDAQ:XEL [https://seekingalpha.com/symbol/XEL]) has agreed to buy [https://www.bloomberg.com/news/articles/2025-10-01/xcel-purchases-turbines-from-siemens-for-new-gas-plants-in-texas] natural gas turbines from Siemens Energy (OTCPK:SMEGF [https://seekingalpha.com/symbol/SMEGF]) for two planned power plants in west Texas, Bloomberg reported Wednesday, without disclosing the purchase price for the turbines, which have combined capacity to power ~500,000 homes.

Xcel (NASDAQ:XEL [https://seekingalpha.com/symbol/XEL]) reportedly plans to install five of the turbines at a 1,200 MW plant it is building in Gaines County to start working when demand peaks, and another five turbines will help Xcel power a 930 MW facility on the site of a coal plant the utility plans to close in Bailey County.

Siemens Energy (OTCPK:SMEGF [https://seekingalpha.com/symbol/SMEGF]) will deliver the first of the turbines in early 2026 for the new plants that are expected to supply the central U.S. grid operated by the Southwest Power Pool, which serves more than 18 million people in 14 states.

Texas faces unprecedented demand for electricity from data centers, oil production and the state’s overall economic growth, and the region depends on aging infrastructure.

MORE ON XCEL ENERGY

* Xcel Energy: Clears A Major Hurdle, Still A Hold For Now [https://seekingalpha.com/article/4826145-xcel-energy-clears-major-hurdle-still-hold]
* Xcel Energy: Buy This Dividend Aristocrat In The Making [https://seekingalpha.com/article/4807150-xcel-energy-buy-this-dividend-aristocrat-in-the-making]
* Xcel Energy Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4806898-xcel-energy-inc-2025-q2-results-earnings-call-presentation]