Key Takeaways
- Mubadala exited AI cooling firm CoolIT Systems after Ecolab acquired it for $4.75 billion in cash.
- CoolIT specializes in liquid cooling technology, crucial for efficient AI systems in data centers.
- The acquisition highlights rising demand for better cooling solutions and reflects CoolIT’s significant growth in valuation.
- Ecolab aims to strengthen its digital infrastructure presence and benefit from AI infrastructure growth through this deal.
- This transaction illustrates the increasing importance of efficient cooling in modern computing environments.
Mubadala has exited AI cooling firm CoolIT Systems following a $4.75 billion acquisition by Ecolab. The deal is fully cash-based. CoolIT focuses on liquid cooling technology designed for modern data centres. The acquisition comes as demand for efficient cooling rises alongside the rapid growth of artificial intelligence workloads.
CoolIT had been backed by KKR, which held a controlling stake, while Mubadala maintained a minority position. KKR originally invested in the company in 2023, when it was valued at around $270 million. The latest transaction reflects a sharp increase in valuation in just a few years.
Rising demand drives Mubadala exits AI cooling firm
As AI systems become more powerful, they generate more heat inside data centres. This has pushed companies to look for better cooling solutions. Liquid cooling is increasingly replacing traditional air-based systems because it is more efficient for high-performance computing.
CoolIT develops technologies such as cold plates and liquid cooling units used in advanced computing environments. Its systems are already used by major industry players, including Nvidia and AMD. The company is expected to generate about $550 million in revenue over the next year. At the same time, the broader data centre market continues to expand as AI adoption accelerates.
Ecolab expands after Mubadala exits AI cooling firm
Ecolab is acquiring CoolIT to strengthen its position in digital infrastructure. Known for its expertise in water management and industrial services, the company is now moving deeper into cooling and fluid systems for data centres. The transaction is expected to be completed in the third quarter of 2026.
The company is positioning itself to benefit from long-term growth in AI infrastructure. It expects the deal to support earnings growth by 2028. Meanwhile, increasing investment in data centres has led to a rise in similar deals across the industry.
This acquisition underlines the growing importance of efficient cooling in modern computing. It also represents a significant exit for Mubadala from the AI cooling sector.