In 1247, after the death of the Thuringian landgrave Henry Raspe, younger brother of his mother Irmgard and last male heir of the Ludovinger dynasty, Siegfried interfered in the succeeding War of the Thuringen Succession. During the conflict, the young prince occupied the County palatine (German: Pfalzgrafschaft), by right of his mother. Later he renounced the county in favor of the Wettin margrave Henry III of Meissen in exchange for a monetary compensation.
After the death of his father in 1252, in accordance with the family law of the Ascanian dynasty, Siefgried and his elder brothers Henry II and Bernhard divided the Anhalt lands. Siegfried received the eastern estates around Köthen. His style Count of Köthen-Dessau (used from 1253) likewise derived from the territories he received as his inheritance. In 1273 he even stood as a candidate in the Imperial election, though the princes eventually elected Count Rudolf of Habsburg king.
In 1290 Siegfried renounced his rule to become a preaching monk (German: Predigermönch). As a result, his eldest son Prince Albert I of Anhalt became the actual ruler in the Köthen and Zerbst estates, although the former prince retained his rank until his death. Siegfried died at Köthen Castle in 1298.