Mubadala agrees to sell minority stake in CoolIT Systems to Ecolab

Mubadala Investment Company on Thursday announced that it has entered into a definitive agreement to sell its minority stake in CoolIT Systems, a global leader in liquid data centre cooling, to Ecolab as part of a transaction valued at $4.75 billion led by KKR.

In 2023, Mubadala invested in CoolIT alongside KKR, which invested through its Global Impact Fund II. A 25-year pioneer in liquid cooling, CoolIT designs and manufactures advanced systems that enable sustainable data centre growth as AI-driven compute demand increases.

While cooling can account for up to 50 per cent of total facility energy use in traditional air-cooled data centres, liquid-cooled data centres use around 30-40 per cent less energy for cooling while also reducing water consumption as a closed-loop system. Today, leading hyperscalers and data centre operators rely on CoolIT’s liquid cooling technologies to improve energy efficiency and support higher-density AI infrastructure across more than 300 data centres globally.

“When Mubadala invested in CoolIT three years ago, we had a strong conviction that liquid cooling would become a critical enabler of more sustainable digital infrastructure. Today, CoolIT has established itself as a leading global player in this technology, as the demand for energy‑efficient data‑centre solutions accelerates with the rise of AI,” said Abdulla Mohamed Shadid, Head of Energy and Sustainability, Private Equity at Mubadala.

He added, “Our successful partnership with KKR and the CoolIT management team is a testament to the value that can be created through active management and aligned ownership, and we are proud of what has been achieved together.”

CoolIT has delivered significant operational improvements and growth across the business, driven by a strong ownership mindset, continued product innovation, and expanded relationships with hyperscale customers.

Since 2023, the company has expanded its manufacturing footprint to more than 300,000 square feet, increased coolant distribution unit (CDU) capacity by 25x, and doubled its workforce, adding more than 300 jobs. CoolIT has positioned the business to deliver projected around 4x revenue growth and around 10x EBITDA growth through 2026.

“The acquisition of CoolIT by Ecolab, an industry leader in water management, will be an outstanding outcome for our customers, employees and shareholders alike”, said Jason Waxman, CEO of CoolIT Systems. “Our support and partnership with Mubadala helped to transform CoolIT into a world-class provider of liquid cooling solutions for hyperscale computing. Our commitment to building a strong business in the UAE will continue long after the acquisitions close."

By 2030, data centres are projected to consume 945 TWh, surpassing the combined current usage of Germany and France, and over double 415TWh in 2024, while their water use is projected to reach 450 million gallons per day – equivalent to the daily use of around 5 million people – up from 292 million gallons in 2022.

In 2025, CoolIT’s solutions delivered approximately 2.18 billion kWh in energy savings, enough to power approximately 200,000 homes for one year.

The transaction, which is subject to customary regulatory approvals, is expected to close in Q3 2026.

WAM