Mubadala Investment Company has announced the completion of a definitive agreement to sell its minority stake in Cool IT Systems, a firm specializing in liquid cooling solutions for data centers, to Ecolab. This transaction, led by KKR, is valued at $4.75 billion.
Abdullah Mohammed Al Shadid, the head of Energy and Sustainability at Mubadala’s private equity sector, stated that Mubadala invested in Cool IT three years ago, driven by a strong belief that liquid cooling technologies will be fundamental in building a more efficient and sustainable digital infrastructure. He noted that Cool IT has established itself as a leading global player in this technology, helping to meet the rising demand for energy-efficient data center solutions, particularly with the AI technology boom.
Al Shadid added that the fruitful partnership with KKR, along with the collaboration with Cool IT’s exceptional management team, showcases the extraordinary value that can be achieved through effective management and shared vision among partners. He expressed pride in the shared accomplishments and confidence that the company will continue to build on these achievements as it enters a new phase of growth and expansion.
Jason Waxman, CEO of IT Systems, remarked that Ecolab’s acquisition of Cool IT represents a strategic move that adds value for all stakeholders, including customers, employees, and shareholders. He praised the strategic collaboration with Mubadala, acknowledging its role in enhancing the company’s growth. He highlighted that partnerships with Mubadala have been pivotal in transforming Cool IT into a leading global provider of liquid cooling solutions for high-performance and large-scale computing, reaffirming their strong commitment to continue developing and expanding operations in the UAE as they implement their future vision post-acquisition.
Mubadala made its investment in Cool IT Systems in 2023 alongside KKR through its Global Impact Fund II. Cool IT Systems is recognized as a prominent global leader in advanced liquid cooling technologies, boasting about 25 years of accumulated expertise, focusing on the design and manufacturing of advanced systems that enable and promote the sustainable expansion of data centers to meet the increasing demand for computing capabilities driven by AI technologies.
The company has seen significant improvements and exceptional growth across its operations, guided by a robust methodology that emphasizes value maximization, continuous product innovation, and expanding partnerships with major cloud computing enterprises.
Since 2023, Cool IT has expanded its manufacturing capabilities to exceed 300,000 square feet, increased its production capacity for liquid cooling distribution units by 25 times, and significantly boosted its workforce by adding over 300 jobs.
Currently, Cool IT holds a strong market position, having created a supportive environment that is expected to yield nearly quadrupled revenue growth and a projected tenfold increase in earnings before interest, taxes, depreciation, and amortization by 2026.
Data centers that utilize traditional air cooling processes consume up to 50% of the total energy of a facility, while liquid-cooled data centers use 30 to 40% less energy. Additionally, they help reduce water consumption due to closed-loop cooling systems that minimize waste and evaporation.
Today, major cloud computing companies and data center operators worldwide rely on Cool IT’s innovative solutions to enhance energy efficiency and support AI-dense infrastructure across more than 300 data centers globally.
On a global scale, forecasts indicate that data center energy consumption could reach 945 terawatt-hours by 2030, exceeding the total energy consumption of countries like Germany and France combined, and more than double the 2024 consumption, which is projected at 415 terawatt-hours. It is also expected that water consumption by data centers will reach 450 million gallons per day, sufficient to meet the daily water needs of roughly 5 million people, compared to 292 million gallons in 2022.
In 2025 alone, Cool IT managed to save approximately 2.18 billion kilowatt-hours of energy, enough to power about 200,000 homes for an entire year. This deal is subject to standard regulatory approvals and is anticipated to be finalized in the third quarter of 2026.