Global investment firm KKR has reached a definitive agreement to sell CoolIT Systems, a pioneer in liquid cooling technology for data centres, to Ecolab in a deal valued at $4.75 billion.
The transaction marks a significant success for KKR’s Global Impact Fund II, yielding approximately 15 times the original equity invested. Mubadala Investment Company acted as a co-investor in the business, which has become a critical infrastructure provider as the rise of artificial intelligence drives unprecedented demand for high-density computing.
The sale is set to deliver a life-changing windfall for CoolIT’s 650 employees, all of whom were granted an ownership stake in the company following KKR’s acquisition in 2023. Upon the deal’s completion, staff will receive cash payouts ranging from one year’s salary to more than eight years’ annual pay.
This milestone represents KKR’s first broad-based ownership payout in Canada and underscores a growing private equity trend of aligning employee interests with long-term capital growth. To support the transition, employees will also have access to professional financial coaching and tax preparation services.
Since KKR took ownership, CoolIT has undergone rapid industrial scaling to meet the needs of global hyperscale customers. The company has doubled its workforce, adding 300 jobs, and increased its coolant distribution unit capacity by 25 times.
Environmentally, the firm’s liquid cooling systems are significantly more efficient than traditional air-cooled alternatives, using up to 40% less energy and operating as a closed-loop system to reduce water consumption. In 2025 alone, CoolIT’s technology saved an estimated 2.18 billion kWh of energy, equivalent to powering roughly 200,000 homes for a year.
Following the close of the transaction, which is expected in the third quarter of 2026, CoolIT will continue to operate under its own brand led by CEO Jason Waxman. By joining forces with Ecolab, the company intends to combine its liquid cooling hardware with Ecolab’s expertise in water treatment and digital services to create an end-to-end cooling solution for the AI era. The deal remains subject to customary regulatory approvals.
