Baker Hughes Defines ‘The Energy Equation’ With A Digital Foundation

The global energy sector is undergoing a profound transformation, shaped by the accelerating transition towards cleaner, lower-carbon and more resilient energy systems. At its annual meeting, Baker Hughes outlined its vision for ‘The Energy Equation’ – the fundamental bond between energy sources and industrial outcomes. As energy demand and supply both increase, sustainability sits at the heart of this equation, driving energy systems to evolve in a way that is affordable, reliable, and uses less carbon. This is not a linear trade-off; it is a dynamic approach requiring the optimization of existing assets while preparing for a cleaner, more resilient energy landscape.

Shifts reshaping the sector
Today’s energy landscape is experiencing unprecedented shifts, characterized by:

• Decarbonization of hard-to-abate sectors.
  

  Heavy industries (such as steel, cement and ammonia production) are transitioning from coal and grey hydrogen toward blue or green hydrogen, carbon capture and biofuels.
  

• Continued importance of hydrocarbons.
  

  Oil and gas remain vital for industrial needs. The focus is now on reducing emission intensity across the value chain while scaling renewable options.
  

• Surging AI demand.
  

  Data centre consumption is skyrocketing. By 2030, global data centre demand is predicted to equal the total electricity load of Japan.
  

• Regional diversity.
  

  Strategies vary by geography. In general, Africa is focused on gas-powered industrialization and untapped renewables; Europe is grappling with regulation and price; and China is embracing an ‘all of the above’ approach, from coal to hydrogen.
  

• Policy and finance pressures.
  

  Strategic alignment with a complex array of regulatory and financial initiatives – from Singapore’s carbon tax to Africa’s generation financing – is critical to scaling solutions.
  

Digitization is crucial to weather these shifts
Digital technology sits at the centre of the energy equation. Recognizing this, Baker Hughes’s industrial asset management solutions – supported by the Cordant platform and by digital monitoring and diagnostics services like Cordant-powered iCenter – provide operators with the insights needed to predict failures, optimize operations and extend asset life.

Digital solutions like this drive four key outcomes:

• Optimized physical systems.
  

  Predictive maintenance and real‑time modelling rely on a unified view of asset health, strategy and integrity. Baker Hughes’s Cordant brings these insights together into a single decision layer, strengthened by a broader partnership ecosystem - for example, partnering with integrity specialists such as Antea – to support better decision‑making.
  

• Balanced grids and forecast demand.
  

  AI and digital twins help utilities and data centres manage step load fluctuations, optimize cooling systems and integrate variable renewables.
  

• Accelerated decarbonization.
  

  From biofuel production to ammonia cracking to large-scale carbon capture projects like Equinor’s Northern Lights project, digital solutions can help to ensure projects are efficient, scalable and economically viable.
  

• Support for flexible, reliable energy supply.
  

  Combining battery energy storage solutions (BESS), modular gas turbines and AI-powered optimization allows rapid deployment of behind-the-meter solutions for data centres and industrial facilities.

The future of the Energy Equation
In the coming decade, the winners of the energy transition will be defined by their ability to scale low-carbon tech and integrate AI. Baker Hughes’s approach demonstrates that the future of energy isn't just about new fuels – it’s about unlocking value through intelligence to meet growing demand sustainably, affordably and reliably.

For more insights on the challenges faced by industrial organizations, and the technologies available to help tackle them, register for our webinar The Industrial Agility Imperative: Tech Strategies To Overcome Operational Disruptions on March 25.