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According to a report by the Financial Times, private equity giant KKR is collaborating with advisors to explore the sale of CoolIT Systems, a company specializing in data center cooling solutions. The potential deal could surpass $3 billion, as mentioned by individuals familiar with the situation.
Currently, the discussions regarding CoolIT’s sale are in the early stages, and there is no certainty that they will culminate in an actual transaction. However, several potential buyers have been identified as likely contenders.
CoolIT Systems has chosen not to comment on the matter, while KKR has yet to respond to requests for statements. Reuters has also been unable to independently confirm the details of the report.
With the rise of powerful AI and cloud servers that require substantial energy and generate significant heat, traditional air cooling systems are often insufficient. This has increased the demand for more effective cooling solutions.
The booming global demand for data centers has ignited a flurry of acquisitions and partnerships within the industry as companies strive to expand their capacity to address the escalating requirements for power and cooling.
CoolIT specializes in designing, developing and manufacturing liquid cooling technologies for AI and computing systems, according to its website. It was acquired by KKR in 2023.