Ecolab announced it has agreed to acquire CoolIT Systems for approximately $4.75 billion in cash as part of a strategic push to deepen its role in the rapidly growing AI data center ecosystem and build a comprehensive cooling platform for next-generation computing infrastructure.
The deal is driven by a fundamental shift in how data centers are being designed and operated. As artificial intelligence workloads become more intensive, traditional air cooling systems are increasingly insufficient. Liquid cooling has emerged as a critical technology for managing heat, improving performance, and supporting higher-density computing environments. By acquiring CoolIT, Ecolab is positioning itself at the center of this transition.
CoolIT brings specialized thermal engineering capabilities and a full suite of liquid cooling technologies, including coolant distribution units, cold plates, and direct-to-chip cooling systems. These solutions are already used by major hyperscale and colocation operators, and are essential for enabling advanced AI workloads. Ecolab sees this as a natural extension of its expertise in water, chemistry, and fluid management, allowing it to offer a fully integrated Cooling-as-a-Service platform.
A key rationale behind the acquisition is to accelerate growth in Ecolab’s Global High-Tech segment. CoolIT is expected to generate approximately $550 million in sales over the next 12 months, and its addition is projected to increase Ecolab’s overall organic sales growth rate while boosting its Global Water segment. The company also expects significant cross-selling opportunities by combining its global customer base of more than 1,000 data centers with CoolIT’s deep relationships among leading technology companies.
The acquisition also significantly expands Ecolab’s addressable market. The company estimates that the deal will double its Global High-Tech opportunity from $5 billion to $10 billion, reflecting strong double-digit growth driven by AI adoption. CoolIT’s partnerships with semiconductor leaders such as NVIDIA and AMD, along with its manufacturing and engineering capabilities, provide Ecolab with immediate scale and credibility in this high-growth segment.
Financially, Ecolab expects the transaction to generate long-term value despite near-term leverage. The deal will be financed with new debt, initially increasing net debt to adjusted EBITDA to about 3x, with a plan to reduce that to 2x within two years. The acquisition is expected to become accretive to adjusted diluted earnings per share by 2028, with returns exceeding the company’s cost of capital over time.
Ultimately, Ecolab is pursuing this acquisition to evolve from a traditional water and hygiene solutions provider into a critical infrastructure partner for AI-driven industries. By integrating CoolIT’s advanced cooling technologies with its own capabilities, the company aims to deliver improved performance, reliability, and sustainability for data center operators while capturing a larger share of the fast-growing AI infrastructure market.
The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions.
KEY QUOTE:
“AI is transforming the demands on data centers, and liquid cooling is one of the critical technologies that makes advanced computing possible. By bringing together CoolIT’s engineered cooling technologies with Ecolab’s expertise in water, chemistry and digital service, we can provide our customers a complete cooling solution that improves performance and reliability while reducing water and energy use. This acquisition expands our role in serving the AI ecosystem, semiconductor fabs that manufacture chips, power plants that fuel the chips, and data centers that utilize the chips, and positions Ecolab as the partner that the world’s largest technology companies rely on to grow responsibly and sustainably.”
Christophe Beck, Chairman And Chief Executive Officer Of Ecolab
