Halliburton’s 2025 Data Center Power Play for AI
Halliburton’s Data Center Power Play: 2025 Analysis of a Strategic Pivot from Oilfields to AI
Industry Adoption: How Halliburton is Engineering a Pivot from Fracking to Powering Data Centers
Between 2021 and 2024, Halliburton laid the foundational groundwork for a major strategic pivot, although the final objective was not yet public. The company focused on honing its internal digital and automation capabilities, evidenced by collaborations on cloud platforms like the OSDU Data Mesh with Microsoft and Aker BP (September 2023) and partnerships to enable edge computing with Armada (July 2024). Internally, it demonstrated a commitment to infrastructure efficiency by consolidating its own global data center footprint from 12 to 5 facilities. The most critical development was the piloting of its mobile power generation capabilities. The December 2024 agreement with Diamondback Energy and VoltaGrid to deploy four electric frac fleets, generating approximately 200 MW of power, served as a large-scale, real-world proof-of-concept for its ability to deliver “firm energy quickly” outside of traditional grid infrastructure. This period was characterized by capability building, technological validation in its core market, and strategic investments in adjacent energy technologies through its Halliburton Labs accelerator.
The year 2025 marks the dramatic inflection point where Halliburton’s strategy moved from preparation to execution. The centerpiece was the October 20, 2025, announcement of a strategic collaboration and a 20% ownership stake in VoltaGrid, a specialized provider of distributed power solutions. This move publicly declared Halliburton’s entry into the burgeoning data center power market, a direct response to slackening demand in hydraulic fracturing and the explosive, power-intensive growth of the AI industry. The market’s reaction was immediate and positive, with Halliburton’s stock surging 11.6% on the day of the announcement. The context for this pivot is a broader industry trend, with competitors like SLB aggressively targeting over $1 billion in 2025 revenue from new energy ventures, including data center solutions. The change is stark: what began as leveraging e-frac power for oilfield efficiency has now been commercialized into a turnkey power generation offering for a completely new, high-growth vertical.
Table: Halliburton’s Strategic Investments in Data Center Adjacencies
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Capital Spending Reduction | Oct 2025 | Announced a 30% reduction in its 2026 capital spending plan to $1 billion, freeing up capital for reallocation to higher-growth ventures like the data center power initiative. | Halliburton upbeat on international demand; cost cuts to … |
| VoltaGrid | Oct 2025 | Disclosed a 20% ownership stake in VoltaGrid to solidify its partnership for providing distributed power solutions to data centers. The investment aligned financial interests and supported a 15% stock rise in the following month. | Struggling frackers lean in on powering data centers to … |
| Cybersecurity Incident | Aug 2024 | Incurred approximately $35 million in expenses following a cyberattack, highlighting the financial risks and critical importance of cybersecurity in the digital infrastructure environment Halliburton is entering. | Halliburton incurs about $35M in expenses related to … |
| Adena Power | Jul 2024 | Selected Adena Power, a developer of behind-the-meter sodium batteries, for its Halliburton Labs accelerator, signaling interest in energy storage solutions critical for power stability in data centers. | Adena Power joins Halliburton Labs |
| 360 Energy | Dec 2024 | Invested via Halliburton Labs in 360 Energy, a startup that uses stranded or flared natural gas to power modular data centers for applications like Bitcoin mining, directly linking underutilized energy with high-value computation. | Halliburton Labs Welcomes Five New Companies to … |
| Data Center Consolidation | 2023 (Ongoing) | Executed an internal project to reduce its global data center footprint from 12 to 5 facilities, providing firsthand experience in data center migration, efficiency, and modern infrastructure management. | Halliburton 2023 Annual & Sustainability Report |
Table: Halliburton’s Key Partnerships for Power and Digital Transformation
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Shell | Oct 2025 | Signed a framework agreement to provide its Remotely Operated Completion System (ROCS), highlighting Halliburton’s push towards automated, remote operations technology foundational to its digital strategy. | Halliburton to provide umbilical-less installation services … |
| VoltaGrid | Oct 2025 | Announced a cornerstone strategic collaboration to develop and deploy distributed, lower-emission power generation solutions for the global data center industry, starting in the Middle East. | VoltaGrid and Halliburton announce strategic collaboration … |
| Coterra Energy | Jan 2025 | Launched the first fully autonomous hydraulic fracturing program, showcasing leadership in deploying AI, machine learning, and automation in the field—capabilities relevant to sophisticated data center power management. | Coterra Energy and Halliburton launch first fully automated … |
| Diamondback Energy & VoltaGrid | Dec 2024 | Signed an agreement to deploy four electric simul-frac fleets powered by ~200 MW from VoltaGrid, serving as a large-scale proof-of-concept for the mobile power plant model now being marketed to data centers. | Diamondback Energy, Halliburton, and VoltaGrid Sign |
| Armada | Jul 2024 | Partnered to integrate Armada’s edge computing platform with Halliburton’s cloud applications, enabling real-time data processing at remote sites applicable to both oilfields and distributed data center infrastructure. | Armada and Halliburton’s Landmark Announce Global … |
| Aker BP, Microsoft, & SLB | Sep 2023 | Collaborated to develop an open “Data Mesh” solution on Microsoft Azure, demonstrating a commitment to cloud-native, open-standard data platforms that underpin modern data center operations. | Aker BP collaborates with Microsoft, SLB and Halliburton to … |
| Saudi Data and Artificial Intelligence Authority (SDAIA) | Sep 2022 | Signed an MoU to co-develop data science and AI solutions, reinforcing capabilities in the very technologies that are driving the explosive demand for data center power. | Halliburton and SDAIA signs MOU for AI applications in … |
Geography: Halliburton’s Global Data Center Power Ambitions
Between 2021 and 2024, Halliburton’s geographic focus for its emerging power and digital strategy was centered on North America. The most significant physical demonstration of its power-as-a-service model was the 200 MW deployment for Diamondback Energy in the Permian Basin, Texas. This project, along with VoltaGrid’s existing large-scale agreements with Oracle (2.3 GW in Texas) and Vantage Data Centers (1 GW in North America), firmly anchored its capabilities and proof-of-concept within the U.S. market. While digital partnerships had a global flavor—such as collaborations with Aker BP in Norway and an MoU with the Saudi Data and Artificial Intelligence Authority (SDAIA)—the physical infrastructure activity was distinctly North American.
The strategic landscape shifted dramatically in 2025. With the formal announcement of the VoltaGrid collaboration, Halliburton declared a clear international focus, explicitly targeting the Middle East as the initial market for its data center power solutions. This marks a pivotal expansion from its North American proving ground to a region with significant capital and ambition for digital transformation but which may also face grid constraints. This geographic leap leverages Halliburton’s extensive international footprint and logistical expertise. The strategy is clear: validate the technology and business model in North America, then use a formal partnership to scale it globally, starting with high-potential markets like the Middle East. Future expansion into other power-constrained but high-growth data center regions like Southeast Asia is a logical next step.
Technology Maturity: Halliburton’s Journey from Oilfield Power to Data Center Solutions
In the 2021-2024 period, Halliburton’s relevant technologies were at different stages of maturity. Its digital platforms, including DecisionSpace® 365 and the iEnergy® Hybrid Cloud, were commercially mature products being enhanced through partnerships for edge computing (Armada) and open data standards (OSDU). The core power generation technology—using mobile, gas-powered turbines originally for electric fracturing—was moving from pilot to early commercial scaling within the oilfield. The December 2024 agreement to deploy 200 MW for Diamondback was a critical validation point, proving the technology’s reliability at a significant scale. Concurrently, Halliburton was exploring earlier-stage concepts through its venture arm, with investments like 360 Energy representing a demonstration-level effort to link stranded gas to modular data centers.
By 2025, the technology maturity narrative has fundamentally shifted from validation to strategic commercialization in a new market. The underlying power generation technology, provided by partner VoltaGrid, is already commercially proven and scaling with major tech clients like Oracle (2.3 GW) and Vantage (1 GW). Halliburton’s strategic move is not about proving a new gadget, but about creating a new commercial offering that packages this mature technology with its own world-class project management and global logistics capabilities. The launch of the Halliburton-VoltaGrid collaboration in October 2025 represents the full commercial launch of this new business line. The rapid and positive stock market reaction and the clear competitive landscape signal that this technology application has now entered a high-growth commercial phase, leaving the pilot stage firmly behind.
Table: SWOT Analysis of Halliburton’s Data Center Power Strategy
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Deep expertise in large-scale energy project management and global logistics. Established digital platforms like iEnergy® and DecisionSpace® 365. | Demonstrated capability to deploy large-scale, mobile power (200 MW Diamondback deal). Formal partnership and 20% stake in a technology leader, VoltaGrid. Global operational footprint ready for expansion. | The company validated its ability to move from theory to practice, successfully deploying a large-scale mobile power plant for an industrial user, which de-risked the concept for the data center market. |
| Weaknesses | No direct experience or contracts in the data center market. Power generation technology (e-frac) was exclusively applied and marketed within the oil and gas sector. | Reliance on a partner (VoltaGrid) for the core power generation technology. Cybersecurity vulnerability highlighted by a $35M incident. Potential lag behind competitor SLB’s $1B new energy revenue target. | The company mitigated its lack of in-house tech by partnering with and investing in a specialist (VoltaGrid), but this introduced a new dependency. The cyberattack exposed a critical vulnerability as it pivots to a more digital-centric business. |
| Opportunities | Growing market awareness of AI’s immense power demands. Ability to incubate new energy-data concepts via Halliburton Labs (e.g., Adena Power). | Explosive, grid-constrained growth in the data center market creates urgent demand. Ability to offer a unique, turnkey solution by combining Halliburton’s logistics with VoltaGrid’s tech. Explicit international expansion plan starting with the Middle East. | The market opportunity crystallized from a future trend into an immediate, addressable crisis for data center operators. Halliburton timed its formal entry to coincide with this peak demand, moving from incubation to direct commercialization. |
| Threats | Cyclicality and perception challenges of the core fossil fuel business. Early-stage competition from other diversifying industrial players. | Aggressive and direct competition from OFS rivals (SLB, Baker Hughes) also entering the space. Potential ESG pushback from tech clients over the use of natural gas. Execution risk in deploying projects in new international markets. | The threat evolved from general market cycles to direct, head-to-head competition for data center contracts. ESG concerns became a more acute business risk, requiring a clear narrative on lower-emissions and future-proofing. |
Forward-Looking Insights: What’s Next for Halliburton’s Energy-for-Data Play?
The data from 2025 signals that Halliburton’s pivot to data center power is no longer a future ambition but a present-day commercial reality. The strategy is well-defined, the key partnership is solidified with a significant financial stake, and the market has given its initial stamp of approval. Looking ahead, the focus will shift from announcements to execution.
The most critical signal to watch for in the coming year will be the announcement of the first major data center power project in the Middle East. This will be the ultimate validation of the international expansion strategy and a key test of the Halliburton-VoltaGrid partnership’s ability to execute outside its North American home turf. Secondly, investors and competitors will be scrutinizing future quarterly reports for specific revenue and margin figures from this new business line. Quantifying the financial contribution will be essential to measure its success against rivals like SLB and to justify the strategic shift. Finally, the market should watch for signs of technology integration, specifically how Halliburton begins to layer its proprietary digital and automation platforms, like the LOGIX™ suite, on top of VoltaGrid’s physical power systems. Creating an AI-driven, predictive power management offering could be a key differentiator, transforming Halliburton from just a power provider into a truly integrated energy and data infrastructure partner for the AI era.
Frequently Asked Questions
Why is Halliburton pivoting to provide power for data centers?
According to the analysis, Halliburton’s pivot is a strategic response to two key trends: slackening demand in its core hydraulic fracturing business and the explosive, power-intensive growth of the AI industry, which has created urgent demand for new power sources for data centers.
Who is Halliburton’s main partner in this data center venture?
Halliburton’s key partner is VoltaGrid, a specialized provider of distributed power solutions. In October 2025, Halliburton solidified this relationship by announcing a formal strategic collaboration and acquiring a 20% ownership stake in VoltaGrid to jointly develop and deploy power solutions.
How did Halliburton test its ability to provide large-scale mobile power?
Halliburton conducted a large-scale, real-world proof-of-concept in December 2024 through an agreement with Diamondback Energy and VoltaGrid. They successfully deployed four electric frac fleets in the Permian Basin, generating approximately 200 MW of power, which demonstrated their capability to deliver ‘firm energy quickly’ outside of the traditional grid.
What are the primary risks or threats to Halliburton’s new data center strategy?
The SWOT analysis identifies three main threats: aggressive competition from rivals like SLB who are also entering the space, potential ESG (Environmental, Social, and Governance) pushback from tech clients over the use of natural gas, and the execution risk of deploying complex projects in new international markets.
Where are Halliburton’s geographic priorities for this new business?
While the strategy was initially proven in North America (specifically the Permian Basin in Texas), Halliburton’s focus shifted in 2025. The company is now explicitly targeting international expansion, with the Middle East named as the initial market for its data center power solutions, leveraging its existing global footprint.
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