Lorenzo Simonelli, CEO of Baker Hughes, speaks during an interview with CNBC at the New York Stock Exchange (NYSE) in New York City, U.S., on September 4, 2025. Jeenah Moon | ReutersBaker Hughes has yet to see higher borrowing costs slow investment in big energy projects, with its chief executive pointing to strong demand for natural gas and power from the global buildout of artificial intelligence infrastructure. “We haven’t seen a slowdown, and the bankability is really based on the offtake agreements that are in place, as well as the outlook for energy demand,” Chairman and CEO Lorenzo Simonelli told CNBC at the Gastech conference in Bangkok. Financing remains an important consideration for the projects, Simonelli said, but the growing energy needs of population growth, industry and data centers continue to underpin investment. “Energy demand will not necessarily slow with population growth, with the growing link between industrial outcomes of data centers and AI, it is intrinsically linked to energy supply and energy sources,” he said. “So we haven’t seen that yet, and we continue to monitor it.” Simonelli’s comments come as the Iran war has disrupted Middle East energy flows and sent oil prices back above $100 a barrel, adding to concerns about inflation and borrowing costs. The conflict has also disrupted natural gas markets, with restrictions on shipping through the Strait of Hormuz threatening LNG supplies from Qatar, one of the world’s largest exporters. Simonelli said high prices themselves can spur the investment needed to eventually bring additional supply to the market. “We are ‘full steam ahead’ looking beyond the short term, and obviously high prices also lead to investment today, which will lead to supply arriving tomorrow,” he said. Baker Hughes expects prices to ultimately remain rangebound and sees little risk that a next wave of LNG supply will create a prolonged glut. The company estimates that installed LNG capacity will need to reach 900 million tonnes per year by 2035 to meet future demand. AI is becoming an increasingly important source of that demand. Simonelli said Baker Hughes does not expect the rapid expansion of data centers to slow, even as concerns grow about their electricity and water consumption. “We believe there will not be a slowdown,” he said, adding that Baker Hughes is increasing capacity to meet demand. In Southeast Asia, grid constraints are also driving some data center operators toward distributed and behind-the-meter power generation, an area where Baker Hughes provides equipment. Simonelli sees natural gas playing a central role in meeting those growing electricity needs. Baker Hughes has just over $37 billion in order books, including demand tied to gas infrastructure, data center power generation and LNG, it said. “If you look at natural gas, it’s not a transition fuel; it’s a destination fuel,” he said. “We are in a decade of energy demand and gas is essential for it.”
