Halliburton (NYSE: HAL) and Houston‑based VoltaGrid announced a 400‑megawatt (MW) modular natural‑gas power commitment to support the development of data centers across the Eastern Hemisphere, with delivery scheduled for 2028.
The partnership marks a strategic expansion for Halliburton, which has historically focused on oilfield services. By entering the data‑center power market, the company aims to diversify revenue streams and tap into the growing demand for high‑density, low‑carbon power solutions. CEO Jeff Miller said the deal demonstrates Halliburton’s ability to deliver power solutions that support the rapid growth of AI, cloud computing, and digital transformation.
Halliburton’s Q3 2025 earnings provide context for the partnership’s significance. The company reported net income of $18 million and adjusted net income of $496 million, with revenue of $5.6 billion and an adjusted operating margin of 13%. Adjusted earnings per share of $0.58 beat analyst expectations of $0.50, a $0.08 or 16% beat. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin Completion and Production and Drilling and Evaluation segments, each up 2% sequentially.
Segment performance highlights that Completion and Production revenue reached $3.2 billion and Drilling and Evaluation revenue was $2.4 billion, both reflecting steady demand and pricing power in core oilfield services. The mix shift toward these segments helped offset the impact of impairments and other charges that reduced net income to $18 million.
Analysts responded positively to the earnings beat and the strategic partnership. Citigroup raised its price target to $33.00 from $31.00, and other analysts maintained buy ratings, citing the company’s strong earnings execution and the long‑term growth potential of the data‑center power market. The partnership is viewed as a key tailwind that could enhance Halliburton’s revenue mix and create cross‑sell opportunities between energy services and data‑center power solutions.
Looking ahead, Halliburton expects quarterly cost‑reduction actions to save $100 million, and its 2026 capital‑spending guidance is projected to decline by nearly 30% to about $1 billion, excluding VoltaGrid‑related investments. The 400‑MW commitment signals a strategic shift toward high‑capex, high‑growth opportunities that align with the company’s technology‑driven strategy and support its long‑term capital‑return framework.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.