SLB New Energy's Gavin Rennick Speaks About Powering AI Data Centers

SLB New Energy, a Schlumberger NV unit, is advancing geothermal, carbon capture, and hydrogen technologies to address the escalating demand for low-carbon electricity, particularly for AI data centers. President Gavin Rennick outlined a target of $3 billion in revenue by 2030, noting that individual projects could be worth billions, signaling a significant strategic push into clean energy solutions.

Analysis

Schlumberger (SLB), through its SLB New Energy division, is strategically positioning itself to capitalize on the increasing demand for low-carbon electricity, explicitly citing the power requirements of AI data centers as a key driver. The company is focusing its efforts on geothermal energy, carbon capture and storage (CCS), and hydrogen technologies, leveraging its core competencies in subsurface engineering. The unit's President, Gavin Rennick, has provided significant forward guidance with a target to generate $3 billion in revenue by 2030, underscoring the scale of this ambition by noting that individual projects could be worth billions. This initiative, reflected by a strongly positive sentiment score of 0.75, represents a material diversification for the oil service giant, directly linking its future growth to the secular trends of the renewable energy transition and the AI infrastructure buildout.

Key Decisions for Investors

• Investors should evaluate this strategic pivot as a long-term growth driver that could diversify SLB's revenue away from traditional oil and gas cycles and link it to the high-growth AI infrastructure theme.
• It is prudent to monitor for interim milestones, such as the announcement of specific billion-dollar projects or key partnerships, to validate the company's progress toward its stated $3 billion revenue goal by 2030.
• While the guidance is optimistic, the 2030 timeline introduces significant execution risk, so investors should consider this a long-dated call option on the energy transition rather than a source of immediate earnings uplift.
• For portfolios with an ESG mandate or those seeking exposure to the energy transition, SLB now presents a more compelling case as a diversified energy technology company compared to peers focused solely on fossil fuel services.