Lorenzo Simonelli on global power demand
From Baker Hughes Co ($BKR) Q4 2025 Earnings Call · · Castify Earnings Call
“We believe that global power demand is entering a multi-year cycle. By 2040, global demand is expected to double to approximately 60,000 terawatt hours. This increase implies a compounded annual growth rate of over 4% with gas-fired power generation playing a significant role in this expansion.”
On , Lorenzo Simonelli, Chairman, President & Chief Executive Officer at Baker Hughes Co, spoke about global power demand during Baker Hughes Co ($BKR) Q4 2025 Earnings Call on Castify Earnings Call.
About Lorenzo Simonelli
During Baker Hughes' fourth quarter and full year 2025 earnings call on January 26, 2026, Lorenzo Simonelli discussed the company's outlook and strategic positioning. He stated that industry estimates suggest AI infrastructure spending totaled more than $500 billion in 2025 and is expected to approach a trillion dollars annually in the late 2020s, creating an opportunity for Baker Hughes as data center build-out increases demand for behind-the-meter power solutions. Simonelli said the company now expects to book approximately $3 billion of data center-related orders between 2025 and 2027. He also expressed a belief that global power demand is entering a multi-year cycle, with demand expected to double to approximately 60,000 terawatt hours by 2040, and that gas-fired power generation will play a significant role in this expansion. Simonelli commented on the oil field services sector, stating that a further reduction in idle OPEC+ supply, alongside more constructive oil supply and demand balances, is required before a broader inflection in activity emerges, which he described as likely a 2027 catalyst. He noted that the company's portfolio actions are positioning Baker Hughes to evolve into a stronger, more industrialized energy solutions company, underpinned by an increasingly opex-levered business mix and a differentiated life cycle portfolio.