Ecolab acquires CoolIT Systems for $4.75 billion to meet surging AI data center cooling demand

Ecolab to acquire AI data center cooling tech firm for $4.75 billion

Ecolab said on Friday it has agreed ⁠to ⁠acquire CoolIT Systems, a liquid cooling technology provider for AI data centers, from KKR for $4.75 billion in cash. Water solutions company Ecolab said on Friday it has agreed ⁠to ⁠acquire CoolIT Systems, a liquid cooling technology provider for AI data centers, from KKR for $4.75 billion in cash. The global ⁠appetite for data centers has sparked a ⁠wave of dealmaking across the industry as companies race to build capacity to meet the surge in power and cooling needs. Ecolab expects the deal to close in the third quarter ⁠of 2026, and be accretive to its adjusted diluted earnings per share in 2028.

Ecolab shares fall on reported CoolIT Systems acquisition talks By Investing.com

Investing.com -- Ecolab shares declined more than 2.4% on Thursday following reports that the company is close to finalizing a deal to purchase data-center cooling company CoolIT Systems from KKR. According to the Wall Street Journal, the acquisition is valued between $4.5 billion and $5 billion. Sources familiar with the matter indicated that an announcement could come as early as next week, though cautioned that the deal has not yet been completed. The reported purchase price represents a significant increase from CoolIT's approximately $270 million valuation when KKR acquired a majority stake in the company in 2023. Abu Dhabi's sovereign-wealth investor Mubadala currently holds a minority stake in the business. CoolIT manufactures liquid-cooling systems designed for use in data centers. The company initially focused on producing cooling technology for gaming computers before shifting its focus to support artificial intelligence infrastructure. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Ecolab to buy KKR-backed CoolIT for $4.75 billion amid AI data center boom

March 20 (Reuters) - Ecolab said on Friday it would acquire KKR-backed CoolIT Systems for about $4.75 billion in cash, as it seeks to capitalize on surging demand for liquid cooling in artificial intelligence-driven data centers. Shares of the water management company were down 1% in premarket trading. The deal, expected to close in the third quarter of 2026, comes as technology companies ramp up spending on AI infrastructure, driving a shift from traditional air cooling to more efficient liquid-based systems capable of handling higher chip densities and power loads. Owned by funds managed by KKR, CoolIT designs and manufactures liquid cooling systems such as coolant distribution units, cold plates and direct-to-chip technologies used by hyperscale and colocation operators. Its customers include chipmakers such as Nvidia and Advanced Micro Devices. CoolIT is expected to generate about $550 million in sales over the next 12 months, Ecolab said. The deal is expected to be accretive to Ecolab's adjusted diluted earnings per share by 2028. (Reporting by Sumit Saha and Pranav Mathur in Bengaluru; Editing by Leroy Leo and Jonathan Ananda)

Ecolab to acquire AI data center cooling tech firm for $4.75 billion

March 20 (Reuters) - Water solutions company Ecolab said on Friday it has agreed to acquire CoolIT Systems, a liquid cooling technology provider for AI data centers, from KKR for $4.75 billion in cash. The global appetite for data centers has sparked a wave of dealmaking across the industry as companies race to build capacity to meet the surge in power and cooling needs. Ecolab expects the deal to close in the third quarter of 2026, and be accretive to its adjusted diluted earnings per share in 2028. (Reporting by Sumit Saha and Pranav Mathur in Bengaluru; Editing by Leroy Leo)