SLB's Aggressive Digital and AI Strategy Amid Data Centre Boom

SLB has announced its acquisition of S&P Global Energy's subsurface software division, a move designed to bolster its push into digital services, artificial intelligence (AI), and data centre construction. The acquired software portfolio is widely used by US land operators in daily workflows for onshore conventional and unconventional oil and gas exploration and production. Additionally, SLB and S&P Global have agreed to collaborate on building new AI models.

In its first quarter 2026 earnings report, SLB noted a hit to earnings due to the Middle East war and the closure of the Strait of Hormuz, but highlighted its expanding digital and AI business segments as a bright spot. CEO Olivier Le Peuch indicated significant growth in AI and data centre work is expected in 2027, with the segment showing "strong momentum" and an impact that "extends well beyond its size." Digital revenues expanded by 9% year-over-year, and the company reported strong growth in revenues from data centre builds.

Le Peuch also emphasized SLB's recent agreement with NVIDIA to develop an "AI Factory for Energy," described as a reference environment powered by domain-specific generative AI models and industrial-scale agentic AI for the energy industry. Another announcement on digital and AI technology services is expected later this year as SLB marks 100 years of operations.

Despite the earnings hit from the Middle East conflict, executives see a light at the end of the tunnel. They believe oil and gas prices will be structurally higher once the Strait of Hormuz reopens and the war ends, leading to increased business as national oil companies and operators hire contractors to restart production and repair damaged equipment. SLB also expects to benefit from a forthcoming increase in exploration outside the Middle East, with Le Peuch predicting Africa will emerge as one of the strongest markets for offshore greenfield developments.