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                                                                    EXHIBIT 23.1
 
                         INDEPENDENT AUDITORS' CONSENT
 
The Board of Directors
Grey Wolf, Inc.:
 
     We consent to the inclusion in this Registration Statement of Grey Wolf,
Inc. (formerly DI Industries, Inc.), on Form S-4 of our report dated March 3,
1998, relating to the consolidated balance sheets of Grey Wolf, Inc. and
Subsidiaries as of December 31, 1997, and 1996 and the related consolidated
statements of operations, changes in shareholders' equity and cash flows for the
years then ended, and the related financial statement schedule, which report
appears in the December 31, 1997 Annual Report on Form 10-K of Grey Wolf, Inc.
and to the reference to our firm under the heading "Experts" in the Prospectus.
 
   
                                            /s/ KPMG PEAT MARWICK LLP
    
 
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                                            KPMG Peat Marwick LLP
 
Houston, Texas
June 24, 1998