Is Baker Hughes’ Data Center Turbine Deal With Twenty20 Energy Reshaping the Investment Case for BKR?

Simply Wall St

Sun, February 15, 2026 at 7:10 PM GMT+9 3 min read

In this article:

BKR

-0.31%

Baker Hughes recently announced it received an order from Twenty20 Energy for 10 Frame 5 gas turbines and related generator technology, supporting up to 250 MW of power for data center projects in Georgia and Texas, with initial deliveries planned for 2027.

This deal, alongside plans for a broader multi-gigawatt supply agreement, underscores how Baker Hughes is tying its gas turbine franchise to the power needs of AI and digital infrastructure across the United States.

Next, we’ll examine how this emerging multi-gigawatt data center power collaboration could influence Baker Hughes’ investment narrative and growth mix.

Outshine the giants: these 26 early-stage AI stocks could fund your retirement.

Baker Hughes Investment Narrative Recap

To own Baker Hughes, I think you need to believe it can turn its traditional oil and gas hardware and services into a more resilient, energy transition and infrastructure partner, with its large IET backlog as a key near term support. The Twenty20 Energy gas turbine award fits that story by extending gas technology into data center power, but it does not materially change the biggest immediate risk, which is continued exposure to volatile upstream spending and policy shifts that could reshape demand for gas based solutions.

Among recent announcements, the new preferred provider agreement with Marathon Petroleum across 12 refineries and two renewable fuel facilities looks especially relevant, because it reinforces Baker Hughes’ push into higher value, recurring downstream and industrial technologies while its gas turbine fleet is being pulled toward data center and LNG opportunities. Together, these kinds of multi year contracts and framework agreements are central to the bullish catalyst around a growing, longer duration order book, even as cost inflation, tariffs and portfolio reshaping remain important watchpoints.

Yet while the growth in data center power orders is encouraging, investors should not overlook the risk that faster policy shifts toward renewables and electrification could…

Read the full narrative on Baker Hughes (it’s free!)

Baker Hughes’ narrative projects $29.1 billion revenue and $2.9 billion earnings by 2028. This requires 1.8% yearly revenue growth and a $0.1 billion earnings decrease from $3.0 billion.

Uncover how Baker Hughes’ forecasts yield a $59.75 fair value, in line with its current price.

Exploring Other Perspectives

BKR 1-Year Stock Price Chart

Five fair value estimates from the Simply Wall St Community span roughly US$50 to about US$79 per share, showing how far apart individual views can be. Set against that, Baker Hughes’ push into data center power and LNG related equipment as core growth drivers raises important questions about how policy or regulatory changes might influence the company’s longer term opportunity and risk profile, so it is worth weighing several different viewpoints before forming your own.

Story Continues  

Explore 5 other fair value estimates on Baker Hughes - why the stock might be worth as much as 29% more than the current price!

Build Your Own Baker Hughes Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Baker Hughes research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Our free Baker Hughes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baker Hughes' overall financial health at a glance.

Searching For A Fresh Perspective?

Don’t miss your shot at the next 10-bagger. Our latest stock picks just dropped:

Uncover the next big thing with 29 elite penny stocks that balance risk and reward.

Capitalize on the AI infrastructure supercycle with our selection of the 34 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow.

We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include BKR.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

Terms and Privacy Policy

Privacy Dashboard

More Info