By Kelly Cloonan

Shares of Baker Hughes edged up as the company expects stronger energy demand going forward, boosted by the build-out of artificial-intelligence data centers.

The stock was up 3.9%, at $56.00, midday Monday, on track for their highest close since 2017. It has gained 23% over the past 12 months.

The energy-technology company said long-term energy demand continues to rise, driven by population growth, rising living standards and accelerating electrification.

Digital infrastructure, AI and data centers are also adding a new, durable source of energy demand, with industry estimates suggesting that annual AI infrastructure spending will approach $1 trillion annually toward the end of the decade, from more than $500 billion in 2025, Chief Executive Lorenzo Simonelli said during a call with analysts.

"Resilient power supply has emerged as a key bottleneck, which creates a significant opportunity for Baker Hughes as data-center build-out increases demand for behind-the-meter power solutions," Simonelli said.

As a result, the company expects to book about $3 billion in data-center-related orders between 2025 and 2027, he said.

The company continues to benefit from the performance of its IET unit, which helped to offset continued softness in its oilfield-services and equipment segment, Simonelli said.

IET sales were $3.81 billion in the latest quarter, up 9% from last year, driven by gas-technology equipment and services growth. Sales in the company's oilfield services and equipment segment fell 8%, to $3.57 billion.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

January 26, 2026 12:38 ET (17:38 GMT)

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