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(Bloomberg) — SLB, the world’s largest oil field service provider, has agreed to partner with Liberty Energy Inc. to provide modular systems and power for data centers, the latest example of energy companies positioning themselves to benefit from the artificial intelligence boom.
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Through the agreement, SLB will design and provide prefabricated modules, and Liberty will supply natural gas-fired power generation to develop data centers globally, according to a statement on Tuesday that confirmed an earlier Bloomberg News report.
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The partnership underscores how energy companies are integrating into the rapid build-out, particularly power generation, of AI infrastructure. Liberty shares surged in January after the fracking company said it would expand its power business. Providing services for data centers can act as a safeguard from the ups and downs of drilling and fracking activity that is largely tied to oil prices.
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SLB shares rose 0.8% before the start of regular trading in New York. Liberty shares rose 4.4%.
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Liberty Chief Executive Officer Ron Gusek said companies traditionally in the oil field services space are well positioned to enter the data center market because of their experience rapidly deploying technology and infrastructure.
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“We’ve demonstrated an incredible nimbleness and responsiveness that’s allowed the oil and gas industry to evolve at the pace it has” Gusek said in an interview. “We’re bringing that same DNA to the data center space now.”
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SLB expects total deliveries for data center projects to exceed 2 gigawatts —roughly the amount needed to power about 1.5 million homes — by the end of the year, and Liberty plans to deploy about 3 gigawatts of power projects by 2029, the people said, according to the statement.
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“What we hope to do together is to simplify and just streamline our customers’ project management as they have to deal with multiple contractors, multiple risk management,” Amy Chua, senior vice president of data centers at SLB, said in an interview. “By us joining forces we can take away some of those challenges and be able to make it easier for our clients.”
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SLB sold its North American fracking business to Liberty in 2020.
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(Updates to include shares and quotes.)
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