Mubadala sells CoolIT stock in $4.75 billion deal amid AI data center boom

Cooling has become a key cost and efficiency factor in modern data centers, with traditional air cooling systems accounting for up to half of a facility’s total energy usage. Liquid cooling is gaining popularity as operators seek to manage dense workloads while reducing energy consumption.

CoolIT’s system reduces cooling energy usage by approximately 30-40% and operates in a closed-loop setting, which also reduces water consumption. The technology is already deployed in more than 300 data centers around the world, including hyperscale facilities supporting AI workloads.

“When Mubadala invested in CoolIT three years ago, we had a strong belief that liquid cooling would become a key enabler of more sustainable digital infrastructure. Now, as the rise of AI accelerates the demand for energy-efficient data center solutions, CoolIT has established itself as a world-leading player in this technology,” said Abdullah Mohamed Shadid, Head of Private Equity Energy and Sustainability at Mubadala.

Since the investment in 2023, the company has expanded its manufacturing capacity to more than 300,000 square feet, increased its refrigerant distribution unit capacity by 25 times, and doubled its workforce. This expansion reflects broader changes in the industry, with carriers rushing to upgrade their infrastructure to meet growing AI demands.

The business is positioned for further expansion, with sales expected to increase approximately 4x and EBITDA 10x by 2026.

“Our successful partnership with KKR and the CoolIT management team is a testament to the value created through active management and aligned ownership, and we are proud of what we have accomplished together. I am confident that we will build on this momentum as CoolIT enters its next chapter,” said Shadid.

The deal comes at a time when data center energy usage is rapidly increasing. With global consumption expected to reach 945 TWh by 2030, more than double the 2024 level, water demand is also increasing significantly.

This change is beginning to be reflected in broader energy and infrastructure planning, with improved cooling efficiency becoming central to managing costs and large-scale resource usage. In 2025 alone, CoolIT’s systems delivered approximately 2.18 billion kilowatt-hours of energy savings. This is equivalent to powering approximately 200,000 households for one year.

Ecolab’s entry brings a water management perspective to the business as pressures increase on both energy and water usage in data centers. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals.

“The acquisition of CoolIT by Ecolab, an industry leader in water management, is a great outcome for our customers, employees and shareholders alike,” said Jason Waxman, CEO of CoolIT Systems. “The support and partnership with Mubadala has helped 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 acquisition is complete.”