Ecolab buys KKR's CoolIT for $4.75B to bet big on AI data centre cooling

What's the deal? EcolabDealroom has a profile for this one. Try Dealroom →, the St. Paul, Minnesota-based water and hygiene solutions company, has agreed to acquire CoolIT Systems — a liquid cooling specialist for AI data centres — from KKR for $4.75 billion in cash. The deal is expected to close in Q3 2026.

CoolIT counts Nvidia and AMDDealroom has a profile for this one. Try Dealroom → among its customers and is forecast to generate around $550 million in revenue over the next 12 months.

Why now? AI infrastructure spending is surging, pushing data centre operators to replace traditional air cooling with liquid-based systems better suited to denser, higher-power chips. KKR acquired a majority stake in CoolIT in 2023 for roughly $270 million — meaning the sale represents a more than 17-times return in under three years. Abu Dhabi's sovereign wealth fund Mubadala, which held a minority stake, is also exiting.

Ecolab sees CoolIT's thermal hardware as a natural complement to its own water treatment, chemistry, and digital monitoring capabilities — positioning it as a more complete provider in a fast-growing market.

What could go wrong? Ecolab's shares fell about 1% on the announcement. At $4.75 billion, the deal is a major bet for a company with a market cap north of $70 billion, and it won't be earnings-accretive until 2028.

Data centre water usage is also under mounting scrutiny from regulators and environmental groups — a reputational risk for a company whose brand is built around sustainable water management.

The signal: The deal is the latest in a wave of consolidation around AI infrastructure cooling. In December 2025, EatonDealroom has a profile for this one. Try Dealroom → struck a nearly $10 billion deal for BoydDealroom has a profile for this one. Try Dealroom →'s thermal business, which also makes liquid cooling solutions for data centres.

As AI compute demand scales, thermal management is becoming a critical — and richly valued — bottleneck. Industrial incumbents with water and chemistry expertise are increasingly well-placed to compete, and private equity has been quick to spot — and profit from — the opportunity.

Sources:
Ecolab
Business Wire
Reuters
Bloomberg
The Wall Street Journal

Image credit:
CoolIT Systems

J.V.