Baker Hughes has not observed any deceleration in major energy project investments despite elevated borrowing costs, according to CEO Lorenzo Simonelli. Speaking at the Gastech conference in Bangkok on September 13, 2026, Simonelli attributed the sustained momentum to robust demand for natural gas and electricity driven by the global expansion 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 of energy demand,” Simonelli told CNBC. While acknowledging that financing remains a critical factor for project development, he emphasized that rising energy requirements from population growth, industrial activity, and data centers continue to underpin investment decisions.
Simonelli noted that energy consumption is intrinsically linked to technological advancements such as AI and data processing. “Energy demand is not necessarily going to slow down with the increasing population, with the increasing linkage between industrial outcomes of data centers and AI,” he said.
The comments come amid geopolitical instability, including the ongoing conflict in Iran, which has disrupted Middle Eastern energy flows and pushed oil prices back above $100 a barrel. The war has also impacted natural gas markets, with shipping restrictions through the Strait of Hormuz threatening liquefied natural gas (LNG) supplies from major exporter Qatar.
Despite these challenges, Simonelli described LNG supply growth as being on “full steam ahead.” He suggested that current high prices could spur the necessary investment to bring additional supply to market, helping to balance future demand. Baker Hughes projects that installed LNG capacity will need to reach 900 million tons per annum by 2035 to meet growing needs, with little risk of a prolonged supply glut.
Data centers remain a key driver of this outlook. Simonelli expressed confidence that the rapid expansion of data centers will not slow down, even amid concerns over their electricity and water consumption. In Southeast Asia, grid constraints are leading some operators to explore behind-the-meter and distributed power generation, areas where Baker Hughes provides equipment.
Baker Hughes currently holds a backlog exceeding $37 billion, fueled by demand for gas infrastructure, data-center power generation, and LNG projects. Simonelli characterized natural gas not as a transitional fuel, but as a “destination fuel,” stating, “We’re in an energy demand decade, and gas is central to it.”
Interesting how data centers are driving grid constraints in Southeast Asia. Local infrastructure might lag behind demand.
LNG supply chain risks are real though. If Qatar faces issues, prices could spike further.
Isn’t this just more fossil fuel lock-in for the next decade? Where’s the renewable angle?
Backlog at $37 billion really shows the AI energy hunger isn’t slowing down. Fascinating shift.
So gas is the destination now, not just a bridge? That’s a bold take given climate targets.