Oilfield Giants Shift To AI Infrastructure Amid Drilling Demand Decline

Major oilfield service providers SLB, Halliburton, and Baker Hughes are strategically pivoting from traditional drilling services toward AI infrastructure and data center solutions amid declining exploration budgets and stagnant oil prices. The reduced demand for drilling, influenced by OPEC's increased production and prices near $60 per barrel, has spurred these companies to capitalize on the booming need for power to support AI computing. Baker Hughes' Industrial & Energy Technology division is experiencing record growth with significant orders for gas turbines used in hyperscale data centers, while Halliburton is partnering with VoltaGrid to deploy distributed power generation for AI-focused facilities. SLB's standalone Digital Division, focused on cloud and AI-driven software and automation, is its fastest-growing segment, indicating a broader industry shift toward digital infrastructure. This transition also aligns with rising electricity demand, especially in Texas, where AI data centers are expected to drive substantial growth in power consumption. These developments underscore a major transformation in the oilfield services sector, embracing digital and renewable energy solutions as traditional shale production cools.