Texas-Based SLB Acquires Thermal Tech Company Kelvion Amid Data Center Expansion
Texas-based SLB (formerly Schlumberger) has acquired Kelvion, a thermal management company, to expand its presence in the data center industry, projecting significant revenue growth in this sector. The acquisition comes amidst ongoing discussions and scrutiny in Texas regarding data centers' water and electricity consumption, involving state officials and federal politicians.
SLB, formerly Schlumberger, a global technology company headquartered in Houston, Texas, announced the acquisition of Kelvion, a thermal management company. This strategic move aims to bolster SLB's role in data center infrastructure, which CEO Olivier Le Peuch described as a response to AI driving significant infrastructure investment. The company projects its data center revenue to reach over $2 billion by 2026 and $5 billion by 2028 through this expansion.
The acquisition reflects SLB's diversification away from traditional fossil fuels into the technology sector, with data center development becoming its fastest-growing market segment. Kelvion's expertise in heat exchange and thermal management, including water-based, air-based, and hybrid cooling systems, is seen as crucial for addressing critical heat dissipation challenges in next-generation AI computing infrastructure.
The context of this expansion unfolds against a backdrop of increasing scrutiny over data center development in Texas. Recent Texas House hearings have highlighted concerns regarding a lack of statewide tracking of water usage by data centers. Furthermore, Governor Greg Abbott directed the Public Utility Commission and ERCOT to audit data centers' grid connections following public outcry. Attorney General Ken Paxton has also voiced concerns about related issues like foreign infrastructure and AI accountability.
Conversely, some political figures have supported data center development. U.S. Senator Ted Cruz (R-TX) recently claimed on his podcast that the Chinese Communist Party is orchestrating anti-data center propaganda, particularly regarding water usage, while acknowledging valid electricity concerns. Former President Donald Trump echoed this sentiment on Truth Social, warning that opposing data centers could leave communities "backwards and poor." The Texas Senate Committee on Water, Agriculture, and Rural Affairs held an interim hearing to assess the water demands of energy-intensive technologies, including data centers.