KKR is exploring a potential sale of data center cooling company CoolIT Systems, which it acquired in 2023, for a price that could surpass $3 billion. The process is in a preliminary stage with multiple potential bidders identified, but no transaction is guaranteed.
The reported sale is driven by high demand for data centers, fueled by AI and cloud computing, which require advanced cooling solutions. CoolIT specializes in the liquid cooling technologies needed to manage the intense heat generated by these powerful servers.
The Financial Times report has not been verified by Reuters, and neither KKR nor CoolIT immediately responded to requests for comment.
Main topics: Private equity sale, data center industry, liquid cooling technology, AI infrastructure demand.
U.S. private equity firm KKR is working with advisers on a sale of data center company CoolIT Systems for a price tag âpotentially exceeding $3 â billion, â the Financial Times reported on Sunday, citing people familiar with the matter.
A potential sale of CoolIT was in âthe preliminary stage and there were no guarantees that it would result in a âtransaction, the report said, adding â that multiple âbuyers had been earmarked as potential âbidders.
KKR âand CoolIT Systems did not â immediately respond to request for comment outside regular âbusiness hours. Reuters could not immediately âverify the report.
High-powered AI and cloud servers crunching data need huge amounts of power, which gives off intense heat that traditional air cooling systems are often unable âto cool properly. The global appetite for data centers has sparked a wave of deal-making across the â industry as companies race to build capacity to meet the surge in power and cooling needs. CoolIT specializes in designing, developing and mass-manufacturing liquid cooling technologies for AI and computing systems, according to its website. It was acquired by KKR in 2023.
A potential sale of CoolIT was in âthe preliminary stage and there were no guarantees that it would result in a âtransaction, the report said, adding â that multiple âbuyers had been earmarked as potential âbidders.
KKR âand CoolIT Systems did not â immediately respond to request for comment outside regular âbusiness hours. Reuters could not immediately âverify the report.
High-powered AI and cloud servers crunching data need huge amounts of power, which gives off intense heat that traditional air cooling systems are often unable âto cool properly. The global appetite for data centers has sparked a wave of deal-making across the â industry as companies race to build capacity to meet the surge in power and cooling needs. CoolIT specializes in designing, developing and mass-manufacturing liquid cooling technologies for AI and computing systems, according to its website. It was acquired by KKR in 2023.
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