Germany's Deutz expects to triple energy unit revenue on AI-driven demand

DUSSELDORF, July 3 (Reuters) - German engine maker Deutz expects its energy business to triple sales over the next five years as booming demand from data centres and artificial intelligence drives investment in backup power systems.

"We are targeting revenue of over €1 billion ($1.2 billion) in the next five years," David Evans, head of Deutz's energy division, told Reuters in an interview published on Friday.

That would represent a tripling from current levels.

Deutz provides backup power systems to ensure electricity supply during outages at a time when the AI boom is creating high demand for a round-the-clock, reliable power supply. 

Deutz intends to capitalise on that demand by expanding through further acquisitions in addition to organic growth, Evans said. 

"Over the past two years, we have invested a low three-digit million amount in expanding the business," he said. 

Recent purchases, including U.S.-based Blue Star Power Systems, Germany's Frerk and Brazil's Maxi Trust, have helped the company build a presence in decentralised energy supply markets across North and South America, Europe, Africa, the Middle East, Asia and Australia.

"We have the funds to continue investing," Evans added.

($1 = 0.8731 euros)

(Reporting by Tom Kaeckenhoff, Writing by Miranda Murray; Editing by Kate Mayberry)