SLB to acquire Kelvion for $3.4 billion in AI data center push

August 31, 2026 at 10:30 PM2 min

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SLB, the world's largest oilfield services company, said Monday it will acquire German cooling equipment maker Kelvion for approximately $3.4 billion in cash. The deal expands SLB's data center infrastructure business, adding thermal management systems for AI-driven power demand. SLB will also assume about $700 million of Kelvion's debt, with the transaction expected to close in the first half of 2027.

Key Facts

SLB will pay approximately $3.4 billion in cash for Kelvion and assume another $700 million of debt.
Kelvion is expected to generate $2.3 billion to $2.4 billion in revenue this year, including $1.2 billion to $1.3 billion from data centers.
SLB targets $4.5 billion to $5 billion in revenue and $700 million to $800 million in adjusted EBITDA from its combined data center solutions business by 2028.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals.
SLB expects $120 million in annual EBITDA synergies within three years of the acquisition.

Acquisition Details

SLB announced the acquisition of Kelvion on Monday, paying approximately $3.4 billion in cash and assuming $700 million of debt. The deal is expected to close in the first half of 2027, subject to regulatory approvals. SLB expects $120 million in annual EBITDA synergies within three years of closing. Kelvion's heat exchangers and thermal management systems serve data centers, heat pumps, renewables, carbon capture, and industrial processing markets.

Data Center Growth

Kelvion is expected to generate $2.3 billion to $2.4 billion in revenue in 2026, with $1.2 billion to $1.3 billion from data centers. Data centers are Kelvion's largest and fastest-growing market. SLB expects its existing Data Center Solutions revenue to have grown at a compound annual rate above 90% between 2024 and 2026, with cumulative delivered capacity exceeding 2 GW by year-end. The combined data center business is projected to generate more than $2 billion in revenue and approximately $300 million in adjusted EBITDA on a pro forma basis in 2026. SLB targets $4.5 billion to $5 billion in revenue and $700 million to $800 million in adjusted EBITDA from the combined data center solutions business by 2028.

Strategic Expansion

SLB began pushing into data center infrastructure before the Kelvion deal, using its engineering capabilities and hyperscaler relationships to build a new business beyond oilfield services. In July, SLB formed a strategic alliance with Liberty Energy, combining SLB's modular data center infrastructure with Liberty's power generation capabilities. The Kelvion acquisition adds cooling and thermal management to that infrastructure business.