SLB has agreed to acquire cooling-equipment manufacturer Kelvion from funds controlled by Apollo Global Management and Triton for US$4.1 billion, including debt.
The transaction consists of US$3.4 billion in cash and the assumption of approximately US$700 million in debt. It is expected to close during the first half of 2027.
Kelvion manufactures heat exchangers and cooling systems used by data centres, heat pumps, renewable-energy projects, carbon-capture facilities and industrial customers.
The acquisition is strategically important because it moves the world’s largest oilfield-services provider further beyond drilling and petroleum production. Oilfield contractors are facing slower activity in some traditional markets, while AI facilities are creating rapid demand for electricity, cooling and heat-management infrastructure.
SLB expects its combined data-centre solutions business to generate between US$4.5 billion and US$5 billion in revenue during 2028, with earnings before interest, taxes, depreciation and amortisation of US$700 million to US$800 million.
Cooling has become one of the most important physical constraints affecting AI investment. High-density processors generate enormous amounts of heat, and data centres cannot expand computing capacity unless developers can remove that heat reliably and efficiently.
SLB’s engineering expertise in pumps, fluids, subsurface systems and large industrial projects could help it integrate power and cooling solutions. The acquisition should more than double the revenue opportunity SLB can pursue for each gigawatt of data-centre capacity.
Investors initially welcomed the diversification, sending SLB shares approximately 3.8 per cent higher after the announcement. The company also maintained its commitment to return more than US$4 billion to shareholders during 2026, despite the acquisition’s cash requirement.
