Mubadala to Sell CoolIT Stake in $4.75B Deal Led by KKR
Mubadala Investment Company has agreed to sell its minority stake in CoolIT Systems to Ecolab in a $4.75 billion deal led by KKR. As a result, the transaction highlights the increasing importance of energy-efficient technologies in the data center industry.
Notably, demand for such solutions continues to rise as AI-driven computing expands globally. Therefore, companies are investing more in infrastructure that can support higher performance while reducing environmental impact.
Mubadala first invested in CoolIT in 2023 alongside KKR’s Global Impact Fund II. Since then, the company has strengthened its position as a leader in liquid cooling technology for data centers.
Liquid Cooling Drives Efficiency Gains
CoolIT specializes in systems that lower energy and water consumption in high-performance computing environments. In contrast, traditional air-cooled data centers can use up to 50 percent of their energy on cooling alone. However, liquid-cooled systems reduce this consumption by 30–40 percent and also limit water usage through closed-loop designs.
Consequently, more than 300 data centers worldwide now use CoolIT’s technology to support dense AI workloads and improve efficiency. At the same time, the company has scaled its operations significantly since 2023. It expanded its manufacturing footprint to over 300,000 square feet, increased CDU capacity 25-fold, and added more than 300 jobs.
Abdulla Mohamed Shadid, Energy and Sustainability Head, Private Equity at Mubadala, said that, “When Mubadala invested in CoolIT three years ago, we had a 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. 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.”
Rising Demand and Future Outlook
The transaction comes as data center energy and water demands continue to grow rapidly. By 2030, data centers are expected to consume 945 TWh of electricity, surpassing the combined current usage of Germany and France. In addition, they may require more than 450 million gallons of water per day.
Meanwhile, CoolIT’s solutions delivered approximately 2.18 billion kWh in energy savings in 2025, which is enough to power 200,000 homes annually. Therefore, the technology plays a key role in improving sustainability across the sector.
Jason Waxman, CEO of CoolIT, said that, “The acquisition of CoolIT by Ecolab, an industry leader in water management, will be an outstanding outcome for our customers, employees, and shareholders alike. 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 the UAE will continue long after the acquisitions close.”
Finally, the deal remains subject to regulatory approvals and is expected to close in the third quarter of 2026.
