Halliburton’s 2025 Pivot: Capturing the AI Data Center Power Market
Halliburton’s Commercial Shift: Projects Move from Oilfield AI to Data Center Power in 2025
Halliburton executed a major strategic pivot in 2025, expanding from an AI-driven oilfield service provider into a direct power supplier for the AI data center industry.
- Between 2021 and 2024, Halliburton’s AI adoption centered on enhancing its core oil and gas operations, evidenced by the deployment of the LOGIX® autonomous drilling platform and the RoboWell project with ADNOC to optimize well performance.
- In 2025, the company’s focus expanded significantly with the announcement of a landmark collaboration with VoltaGrid in October 2025, marking its first commercial entry into providing distributed power generation specifically for AI data centers.
- This diversification was a direct strategic response to stagnating demand in the fracking market and an initiative to capture revenue from the AI sector’s immense energy requirements, as highlighted by the partnership’s goal to support operators like Oracle.
- The company also continued to apply its subsurface and AI expertise to new energy frontiers, securing a commercial contract in June 2025 with GeoFrame Energy to support a direct lithium extraction (DLE) project.
Investment Analysis: Halliburton’s Capital Commitments to AI and New Energy Ventures in 2025
Table: Halliburton Strategic Investments and Capital Allocation
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Data Center Power Capacity | December 2025 | Secured manufacturing capacity for 400 MW of modular natural gas power systems with VoltaGrid for delivery by 2028, representing a major capital push into AI infrastructure. | Voltagrid and Halliburton Make 400 MW Power … |
| Cybersecurity Response | August 2024 | Incurred approximately $35 million in expenses related to a cyberattack, reflecting the cost of securing the digital infrastructure that enables its AI-driven services. | Halliburton incurs about $35M in expenses related to … |
| Namibia Operations Base | November 2024 | Invested $10 million in a new operations base in Walvis Bay, Namibia, to support the deployment of advanced and digital technologies for regional offshore projects. | Halliburton Opens Operations Base in Namibia in a Boost … |
| Acquisition of Resoptima AS | June 2023 | Acquired Resoptima to integrate its data-driven reservoir management technology into the DecisionSpace 365 portfolio, enhancing AI-powered modeling capabilities. | Halliburton acquires Norwegian tech company to enable … |
Partnership Analysis: Halliburton’s Ecosystem for AI and Energy Diversification
Table: Halliburton Strategic Partnerships and Collaborations
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| VoltaGrid | October 2025 | Established a strategic collaboration to develop and deploy distributed power generation systems for data centers, marking Halliburton’s entry into powering the AI sector. | VoltaGrid and Halliburton announce strategic collaboration … |
| Kuwait Oil Company (KOC), Microsoft, and Ghaia.ai | September 2025 | Partnered on KOC’s first successful AI drilling project, the “G Agent” project, as part of KOC’s digital transformation strategy. | KOC delivers first AI success with G Agent drilling project |
| Armada | July 2024 | Signed an agreement to deploy DecisionSpace365 applications at the edge, enabling real-time AI processing at remote operational sites. | Halliburton and Armada exploring edge computing’s … |
| AIQ | July 2024 | Established a global iEnergy® partner agreement to feature AIQ’s RoboWell autonomous well control solution on Halliburton’s cloud platform, expanding its global adoption. | AIQ and Halliburton announce iEnergy® partner … |
| Saudi Data and Artificial Intelligence Authority (SDAIA) | September 2022 | Signed an MoU to co-develop AI solutions for sustainability and subsurface prediction, utilizing Halliburton’s DS365.ai platform. | Halliburton collaborates with SDAIA to use data science … |
Geographic Focus: Halliburton Targets Middle East for AI Data Center Power Growth
In 2025, Halliburton made the Middle East and the broader Eastern Hemisphere the clear geographic focus for its new AI data center power generation business.
- From 2021 to 2024, Halliburton’s AI initiatives were geographically diverse, supporting global oil and gas operations with key digital projects in the Middle East with partners like ADNOC in the UAE and SDAIA in Saudi Arabia.
- The strategic pivot in 2025 was explicitly directed at the Middle East, with the VoltaGrid partnership’s initial rollout of 400 MW of power systems targeting this high-growth region for data center development.
- This regional focus allows Halliburton to leverage its existing operational footprint and relationships, which were strengthened by collaborations like the KOC AI drilling project in Kuwait in September 2025.
- While the new venture is focused, the core business maintains its global reach with significant contracts secured in 2025 in Brazil with Petrobras and North America with Coterra Energy.
Technology Maturity: Halliburton Moves from AI Software to Commercial Power Infrastructure
Halliburton’s technology strategy evolved from deploying AI software for internal efficiency to providing commercial-scale physical infrastructure for the external AI market in 2025.
- During the 2021-2024 period, technology maturation centered on scaling proprietary AI software like the LOGIX® and DS365.ai platforms, which achieved commercial validation through successful deployments with clients such as ADNOC and Hess.
- The year 2025 marked a shift to a new technology application: modular natural gas power systems for data centers. The maturity of this venture was confirmed not by R&D but by a commercial action: securing manufacturing capacity for 400 MW of these systems with VoltaGrid.
- This move represents the application of mature, reliable power generation technology to a new and rapidly growing market, rather than the development of a novel technology from scratch.
- The successful deployment of the world’s first automated on-bottom drilling system with Equinor in February 2025 demonstrates that Halliburton continues to push its core oilfield technology to full commercial automation in parallel.
SWOT Analysis: Halliburton’s Strategic Repositioning in 2025
Table: Halliburton SWOT Analysis of AI and Diversification Strategy
| SWOT Category | 2021 – 2024 | 2025 – Today | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Deep subsurface expertise; established AI platforms like LOGIX® and DS365.ai; strong relationships with National Oil Companies like ADNOC. | Leveraged core competencies in global logistics and project management to enter a new high-growth market; established a first-mover position among oilfield service peers in powering AI data centers. | Halliburton validated its ability to apply its core industrial strengths to a completely new sector, moving beyond its traditional customer base. |
| Weaknesses | High exposure to cyclical oil and gas markets; increasing digital footprint created cybersecurity vulnerabilities. | Stagnating demand in the core fracking market drove the need for diversification; cybersecurity remains a critical weakness, as proven by the $35 million cost of the August 2024 cyberattack. | The company addressed its dependency on the O&G cycle by creating a new revenue stream, but this also expanded its risk profile to include new market execution and amplified cyber threats. |
| Opportunities | Drive further efficiencies in oil and gas operations through automation; expand digital service offerings to existing clients. | Capitalize on the exponential energy demand from the AI sector; expand into adjacent new energy markets like direct lithium extraction (DLE) via the GeoFrame Energy contract. | The strategic pivot in 2025 with VoltaGrid unlocked a major new growth opportunity outside the traditional energy value chain, moving from a service provider to a critical infrastructure enabler. |
| Threats | Volatility in global oil prices; intense competition on digital solutions from peers like Schlumberger. | Execution risk associated with large-scale projects in a new industry; continued cyclical downturns in the core North American market. | The primary threat shifted from just managing oil market cycles to also managing the complexities and execution risks of entering the fast-moving technology infrastructure sector. |
2026 Outlook: Execution of Data Center Projects is Halliburton’s Key Test
Halliburton’s primary strategic imperative is the successful execution of its new data center power generation venture, which will serve as the ultimate validation of its diversification strategy.
- The most critical milestone is the successful deployment of the initial power systems with VoltaGrid in the Middle East, which will determine the viability and scalability of this new business line ahead of the planned 2028 delivery of the full 400 MW capacity.
- Further expansion into new energy materials, following the June 2025 direct lithium extraction contract with GeoFrame Energy, will signal whether Halliburton can build a portfolio of new growth businesses.
- The commercial success of recently launched autonomous systems, such as the intelligent fracturing process developed with Chevron, will determine the profitability and competitiveness of its core business.
- A potential North American market recovery in 2026, as projected by Halliburton’s CEO, would provide a significant financial tailwind, strengthening the core business and funding further strategic diversification.
Frequently Asked Questions
What was Halliburton’s major strategic pivot in 2025?
In 2025, Halliburton made a significant strategic shift by expanding from an AI-driven oilfield service provider into a direct power supplier for the AI data center industry, marking its entry into a new market.
Who is Halliburton’s key partner in its new data center power venture?
Halliburton’s key partner is VoltaGrid. They announced a strategic collaboration in October 2025 to develop and deploy distributed power generation systems specifically for AI data centers.
Why did Halliburton decide to enter the data center power market?
The decision was a strategic response to two main factors: stagnating demand in its core fracking market and the opportunity to capture revenue from the immense and growing energy requirements of the AI sector.
Where is Halliburton focusing its new data center power generation business?
Halliburton’s initial geographic focus for its new AI data center power venture is the Middle East and the broader Eastern Hemisphere. The first 400 MW of modular power systems secured with VoltaGrid are targeted for this high-growth region.
Is Halliburton abandoning its traditional oil and gas business with this new focus?
No, the company is diversifying, not abandoning its core business. In 2025, Halliburton continued to secure major oil and gas contracts with companies like Petrobras and Coterra Energy and pushed its oilfield technology forward with partners like Equinor and Kuwait Oil Company.
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