Oilfield Giants Diversify into Data Center Market Amid Energy Transition December 17, 2025 Major oilfield service corporations are strategically redirecting capital and repurposing industrial assets toward the booming data center sector, signaling a significant shift as traditional energy markets face volatility and long-term transition pressures. This pivot underscores the data center industry's growing appeal as critical infrastructure with stable, long-term demand drivers, attracting investment from adjacent heavy-industry sectors. Leading the trend, industry titan SLB (formerly Schlumberger) announced a joint venture with European data center operator AtlasEdge. The partnership will focus on developing sustainable data centers across Europe, leveraging SLB's expertise in large-scale project management, energy systems, and its global industrial footprint. In a parallel move, competitor Baker Hughes has entered into an agreement with Intel to design and manufacture advanced liquid cooling systems for high-density computing, a direct application of its thermal management knowledge from the oil and gas field. The scale of investment is substantial. SLB has committed an initial $400 million to its data center venture, with plans to unlock up to $1 billion in total value. Baker Hughes anticipates its cooling technology segment to generate approximately $600 million in revenue by 2029. These figures highlight the strategic financial weight these energy service companies are placing on their digital infrastructure bets. “Our industrial and energy expertise is highly applicable to the data center space,” stated a spokesperson from SLB, framing the move as a logical diversification. “We see synergies in power management, geothermal cooling, and the construction of complex, mission-critical facilities.” The implications for the data center industry are multifaceted. The influx of experienced industrial players brings deep engineering prowess, supply chain leverage, and experience with stringent safety and operational standards. Furthermore, their expertise in subsurface geology and renewable energy integration could accelerate innovations in geothermal cooling and grid resilience. This convergence of industries is poised to intensify competition, drive technological advancements in efficiency, and potentially reshape the landscape of data center development and operations. Source: FT
Oilfield Giants Diversify into Data Center Market Amid Energy Transition
