Mubadala Investment Company, Abu Dhabi’s strategic investment and global investment firm KKR, are selling their stake in CoolIT Systems, a liquid cooling provider to data centres, in a deal valued at $4.75 billion.
Both companies are making 15 times their total investment as part of the transaction, with 650 CoolIT employees receiving a substantial cash payout on their ownership in the company, ranging from nearly one year of annual pay to over eight years of annual pay, KKR said in a statement on Thursday.
Mubadala and KKR invested in CoolIT in 2023, with CoolIT employees becoming owners in the business through a broad-based ownership programme at the time of acquisition.
Mubadala has a minority stake in the company, with the majority shareholding held by KKR.
CoolIT is being sold to US-based Ecolab, which provides water management products to industrial and commercial clients.
“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,” said Abdulla Shadid, head of energy and sustainability, private equity at Mubadala.
Liquid cooling involves the use of water or special coolants to control the temperature of servers in data centres, instead of relying only on air.
Cooling data centres with liquid uses 30 per cent to 40 per cent less energy than using air.
“CoolIT demonstrates the power of a true ownership culture in driving meaningful results for both companies and employees," said Pete Stavros, partner and global co-head of private equity at KKR.
"When employees are owners, they have a direct stake in the company’s success and help drive the innovation and execution that fuel long-term growth."
The deal is expected to close in the third quarter of 2026, subject to regulatory approvals.
Since 2023, CoolIT has expanded its manufacturing footprint to more than 91,000 square metres, increased coolant distribution unit capacity by 25 times and doubled its workforce, adding more than 300 jobs. It is aiming to increase revenue fourfold and Ebitda (earnings before interest, taxes, depreciation and amortisation) tenfold by 2026.
The data centre boom is boosting demand for energy and liquid cooling as AI use rises across the globe.
By 2030, data centres are projected to consume 945 terawatt hours of energy each year, surpassing the combined current total usage of Germany and France, and over double the 415TWh in 2024. Their water use is expected to reach 450 million gallons per day, equivalent to the daily use of five million people – up from 292 million gallons in 2022.
In 2025, CoolIT’s solutions delivered nearly 2.18 billion kilowatt hours in energy savings, enough to power about 200,000 homes for a year.
Mubadala, which invests on behalf of the Abu Dhabi government, is at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil. The sovereign wealth fund's $330 billion portfolio spans investments in future-focused sectors, including artificial intelligence, health care, advanced manufacturing and renewables.
It announced new deals this year including a $170 million funding round for Dubai-based real estate aggregator Property Finder, as well as joining global investors in a $16 billion funding round for self-driving technology company Waymo in February.
Separately, Mubadala Energy on Thursday said it had secured Indonesia's South-West Andaman exploration block to expand its presence in the area.
The block was awarded by Direktorat Jenderal Minyak dan Gas Bumi as part of the second bid round of 2025. Mubadala Energy will hold a 100 per cent stake in the block.
“Situated immediately adjacent to Mubadala Energy's existing Andaman acreage, the South-West Andaman block is a strategic addition to the company's Andaman position alongside its South Andaman, Central Andaman and Andaman II blocks,” the company said.
The new announcement comes as Mubadala Energy continues to boost its assets in different regions.
In February, the company completed the acquisition of a 15 per cent participating stake in Egypt’s Nargis Offshore Area concession from Italian energy firm Eni to expand its portfolio in the Eastern Mediterranean.
