no slowdown in energy projects despite higher rates
Baker Hughes CEO Lorenzo Simonelli reports that energy infrastructure investment remains robust despite high interest rates and geopolitical instability. He attributes this sustained demand largely to the massive power requirements of global AI data centers.
Why it matters
The intersection of AI development and energy consumption is becoming a critical factor in global economic planning and energy market stability.
Baker Hughes has yet to see higher borrowing costs slow investment in major energy projects, with its chief executive pointing to robust 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 of energy demand," Chairman and CEO Lorenzo Simonelli told CNBC at the Gastech conference in Bangkok.
Financing remains an important consideration for projects, Simonelli said, but rising energy needs from population growth, industry and data centers continue to underpin investment.
"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, it's intrinsically linked with energy supply and energy sources," he said. "So we haven't seen that as of yet, and we continue to monitor it."
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