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The race to build enough data centers for the AI boom keeps running into the same problem: heat. Too much of it, generated too fast, with nowhere convenient to go. Global energy technology company SLB is now betting big on that problem, announcing Monday it has agreed to acquire Apollo-backed Kelvion, a specialist in thermal management and heat exchange technology, in a deal valued at $4.1 billion.

Why SLB Wants In on Cooling Technology

SLB framed the acquisition as a direct expansion of its footprint in the rapidly growing data center infrastructure space — a sector where cooling has become just as critical as computing power itself, given how much heat modern AI hardware generates during operation.

The Financial Structure of the Deal

SLB will acquire Kelvion from Apollo-managed funds, which hold the majority ownership stake, along with funds advised by Triton, which holds a minority interest. The transaction is structured as approximately $3.4 billion in cash, with SLB also assuming roughly $700 million in existing debt — bringing the total deal value to $4.1 billion.

What Kelvion Brings to the Table

Kelvion serves data center, energy and industrial markets through its cooling and heat-transfer technology, and the company is expected to generate revenue of approximately $2.3 billion to $2.4 billion. Of that total, the data center segment alone is projected to contribute up to $1.3 billion — a figure that underscores just how central AI infrastructure has become to Kelvion's business.

SLB's Vision for the Combined Business

SLB CEO Olivier Le Peuch framed the deal as a pivotal step in the company's broader strategy. "This transaction accelerates our ambition to become an industrial technology partner to the data center industry and help customers address the growing infrastructure complexity required to scale AI," Le Peuch said in a statement.

Currently, SLB's data center offerings center on modular manufacturing, off-site construction, engineering and digital capabilities — pieces of the infrastructure puzzle that pair naturally with Kelvion's cooling expertise once combined under one roof.

Ambitious Revenue Targets Ahead

Together, SLB and Kelvion are projected to generate more than $2 billion in data center revenue during 2026 alone. Looking further ahead, SLB is targeting combined data center solutions revenue of $4.5 billion to $5 billion by 2028 — an aggressive growth trajectory that reflects just how quickly the underlying market is expanding.

Apollo's Perspective on the Exit

In a separate announcement, Apollo confirmed its original investment in Kelvion had been completed back in January, positioning this sale as a relatively swift turnaround for the private equity firm.

Apollo partner Waleed Elgohary described the firm's strategy from the outset as focused on equipping Kelvion's management with the resources needed to chase its most promising growth opportunities. "From the outset, our focus was on giving Kelvion management the resources and strategic support to pursue the company's most compelling growth opportunities, chief among them bringing energy efficiency solutions to the AI buildout," Elgohary said, adding that he expects the company's long-term growth to accelerate now that it's becoming part of SLB.

The Legal Teams Behind the Deal

Sidley Austin LLP is serving as legal counsel to both Apollo funds and Kelvion, with Paul Weiss Rifkind Wharton & Garrison LLP handling regulatory counsel. Gibson Dunn & Crutcher LLP and Milbank LLP are advising SLB on the transaction.

What Comes Next

The deal remains subject to customary closing conditions and regulatory approvals, with both companies targeting a close sometime in the first half of 2027.