Oilfield Giants Shift Toward AI Infrastructure as Drilling Slows
Major oilfield service companies SLB, Halliburton, and Baker Hughes are pivoting toward AI infrastructure and data center development to fuel their next wave of growth. The move comes as drilling activity declines and rigs sit idle across North America.
U.S. oil producers have slashed exploration budgets as crude prices hover near $60 per barrel, pressured by rising output from OPEC and its allies. Meanwhile, demand for electricity has surged due to booming artificial intelligence workloads and cloud computing expansion.
These shifts have pushed the world’s top oilfield contractors to diversify. They are now supplying power systems, turbines, and digital solutions to meet the rapidly increasing global need for computing and energy.
Energy Meets AI: A New Growth Engine
“This is a clear growth avenue given the global need for power generation,” said James West, analyst at Melius Research. “Investors are eager for power-generation exposure — and these strategic moves are driving strong valuation upside.”
Baker Hughes Expands Into Data Centers
Baker Hughes is seeing robust momentum in its Industrial & Energy Technology division, home to its NovaLT gas turbines, grid systems, and digital platforms. The unit recorded over $4 billion in new orders in the third quarter, pushing its total backlog to a record $32 billion.
Its turbines are now being installed in hyperscale data centers, while its Cordant Asset Health software monitors efficiency and uptime. Analyst West noted that Baker Hughes has booked 1.2 gigawatts of data center projects this year alone.
Halliburton Bets Big on Power Generation
Halliburton is deepening its partnership with VoltaGrid, a Texas-based gas generation provider. VoltaGrid recently announced a 2.3 gigawatt project to power Oracle’s next-generation AI data centers.
“The demand for both power and AI is like nothing I’ve ever seen,” said CEO Jeff Miller. “This is a long-term growth opportunity for Halliburton and VoltaGrid.”
The company plans to co-invest in international projects, starting in the Middle East, combining Halliburton’s scale with VoltaGrid’s distributed power systems.
SLB Launches Digital Division for AI & Cloud
SLB has rolled out a standalone Digital Division, now its fastest-growing segment. The business focuses on AI-driven software, cloud automation, seismic data, and digital consulting to modernize clients’ operations.
For the quarter ending September 30, SLB’s digital revenue rose 11% sequentially, bringing annual recurring revenue to $926 million. The division is also providing data center infrastructure solutions, including modular power and cooling systems designed to scale AI and cloud capacity efficiently.
“We’ve seen strong growth in our data center solutions, expanding our reach with hyperscalers into a new market for SLB,” said CEO Olivier Le Peuch.
