All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

charlotte

detroit

columbus

austin

kansas-city

dallas

atlanta

washington-dc

nw-arkansas

boulder

chicago

indianapolis

nashville

richmond

houston

san-francisco

seattle

colorado-springs

boston

des-moines

salt-lake-city

philadelphia

denver

phoenix

new-orleans

miami

twin-cities

huntsville

raleigh

san-antonio

portland

san-diego

tampa-bay

cleveland

pittsburgh

axios-local

axios-pro

axios-live

the-axios-show

Ecolab's $4.75 billion acquisition of liquid cooling player CoolIT Systems from KKR sets a new premium on data center liquid cooling.

Why it matters: The deal could kick off more liquid cooling and thermal management M&A in 2026.

Zoom in: CoolIT System's price tag is 29 times the company's estimated EBITDA over the next 12 months. 

KKR acquired CoolIT in 2023 for $270 million, delivering the private equity firm a 17.6 times valuation increase.

The price tag is "on the upper bound, but not an overpay," says Anthony DeOrsey, research manager with Cleantech Group. Other cooling companies that are more vertically-integrated could command an even higher valuation, notes DeOrsey.

The deal positions Ecolab, a Minnesota-based industrial and water company, more squarely in the high-growth AI sector.

Catch up quick: Power giant Eaton's $9.5 billion deal to buy Boyd Thermal from Goldman Sachs last year equaled 22.5 times Boyd's estimated 2026 EBITDA. 

The big picture: AI data centers are being built with more powerful chips, and the facilities are becoming much more power-dense.

Eventually, these data centers won't be able to use standard air cooling, and liquid cooling will become more dominant.

Nvidia's next-generation Vera Rubin AI chips, due out later this year, will be entirely liquid-cooled with warm water, and will save 6% in facility energy.

State of play: Industrial and energy players are looking to buy big companies with established hyperscaler deals and some smaller startups with next-gen tech.

In 2024, Schneider Electric acquired a 75% controlling interest in liquid cooling player Motivair for $850 million. Meanwhile, Flex bought liquid cooling startup JetCool for $53 million.

Trane Technologies said last month it acquired immersion cooling company LiquidStack for an undisclosed price.

Startups in next-gen thermal management have raised recent rounds, including Novolinc, 3D Architech, and Boston Materials.  

What they're saying: At Nvidia's GTC in San Jose, Calif., last week, liquid cooling companies showed off their latest hardware, while data center developers talked about the transition away from air cooling. 

Some execs pondered next-gen liquid cooling tech like two-phase and immersion.

"With Vera Rubin being 100% liquid cooled, it has really changed the game," said Greg Lewis, Nvidia's global senior director of AI Factory Partner development, during a session at GTC. 

Yes, but: A broad correction in the AI data center market could deliver a valuation correction in liquid cooling firms.

CoolIT deal sets an AI liquid cooling premium

Buyers are zeroing in on hyperscaler deals and next-gen tech.

Trade show booth for CoolIT Systems promoting liquid cooling. Large white panel reads "The World Leader in Liquid Cooling", blue-lit cabinet, and visitors inspect equipment under a curved banner.

CoolIT System's booth at Nvidia's GTC conference in San Jose, Calif. Photo: Courtesy of Katie Fehrenbacher/Axios

Ecolab&#x27;s $4.75 billion <a class="gtmContentClick" data-vars-link-text="acquisition" data-vars-click-url="https://www.businesswire.com/news/home/20260319353197/en/Ecolab-to-Acquire-CoolIT-Systems-a-Global-Leader-in-Advanced-Liquid-Cooling-for-Next-Gen-AI-Data-Centers" data-vars-content-id="78fe023f-0916-40e7-a78d-d15025c2367d" data-vars-headline="CoolIT deal sets an AI liquid cooling premium" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20260319353197/en/Ecolab-to-Acquire-CoolIT-Systems-a-Global-Leader-in-Advanced-Liquid-Cooling-for-Next-Gen-AI-Data-Centers" target="_blank">acquisition</a> of liquid cooling player CoolIT Systems from KKR sets a new premium on data center liquid cooling.Why it matters: The deal could kick off more liquid cooling and thermal management M&amp;A in 2026.

CoolIT deal sets an AI liquid cooling premium

What to read next