Mubadala exits AI cooling firm in $4.75 billion deal amid data centre surge

Dubai: Mubadala Investment Company has agreed to sell its minority stake in CoolIT Systems to Ecolab in a $4.75 billion transaction led by KKR, marking a timely exit from a segment gaining traction amid rising demand for artificial intelligence.

The deal comes three years after Mubadala invested in the company alongside KKR, at a time when liquid cooling was still emerging as a niche within data centre infrastructure. That positioning has shifted, with rising compute intensity pushing operators to rethink how facilities are cooled and powered.

Cooling has become a critical cost and efficiency factor in modern data centres, with traditional air-cooled systems accounting for up to half of total facility energy use. Liquid cooling is gaining ground as operators look to manage higher-density workloads while keeping energy consumption in check.

CoolIT’s systems reduce cooling energy use by around 30 to 40% and operate through a closed-loop setup that also cuts water consumption. The technology is already deployed across more than 300 data centres globally, including hyperscale facilities that support AI workloads.

“When Mubadala invested in CoolIT three years ago, we had 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-center solutions accelerates with the rise of AI,” said Abdulla Mohamed Shadid, Head of Energy and Sustainability, Private Equity at Mubadala.

Since the 2023 investment, the company has expanded manufacturing capacity to over 300,000 square feet and increased its coolant distribution unit capacity by 25 times, while doubling its workforce. That scale-up reflects a broader shift in the industry, with operators racing to upgrade infrastructure to meet rising AI demand.

The business is positioned for further expansion, with projections pointing to roughly fourfold revenue growth and a tenfold increase in EBITDA through 2026.

“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. We are confident that CoolIT will continue to build on this momentum as it enters its next chapter,” Shadid said.

The deal comes at a time when data centre energy use is climbing sharply. Global consumption is projected to reach 945 terawatt hours by 2030, more than double 2024 levels, with water demand also rising significantly.

That shift is beginning to feed into broader energy and infrastructure planning, with efficiency gains in cooling becoming central to managing costs and resource use at scale. In 2025 alone, CoolIT’s systems delivered about 2.18 billion kilowatt hours in energy savings, equivalent to powering around 200,000 homes for a year.

Ecolab’s entry brings a water management angle into the business, aligning with growing pressure on both energy and water usage in data centres. 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, 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 UAE will continue long after the acquisitions closes.”