SLB expands data center business with $4.1 billion deal for Kelvion

The transaction is expected to close in the first half of 2027.

In 2028, SLB expects its combined data center solutions business to generate revenue of $4.5 billion to $5 billion and adjusted earnings before interest, taxes, depreciation and amortization of $700 million to $800 million.

Kelvion increased its investments and strategic focus on serving data centers after it was acquired by Apollo in 2025, according to the asset manager, with the business now its largest and fastest-growing segment.

However, roughly $1.1 billion of Kelvion's revenue in fiscal year 2026 was from other avenues, including heat pumps, renewables, carbon capture and processing solutions, said Stifel analyst Stephen Gengaro.

SLB reaffirming plans to return more than $4 billion to shareholders this fiscal year, with total annual shareholder returns expected to at least match 2026, also signals the deal is not being funded by slowing repurchases, Gengaro added.

The deal reflects a broader push by oilfield contractors to sell power equipment, turbines and data solutions as demand for drilling slows and an increasing number of rigs idle across North America.

Kelvion's acquisition will expand the range of equipment SLB can supply to customers and more than double its revenue opportunity per gigawatt of delivered capacity, the oil services company said.