Private investment major KKR is exploring a potential multibillion-dollar sale of data centre cooling provider CoolIT Systems, aiming to capitalise on surging demand for artificial intelligence infrastructure, according to a report by the Financial Times.
The report cites unnamed people familiar with the matter as revealing that the firm has begun working with advisers on a possible sale of the business. Any transaction could value the company at more than $3bn, representing a substantial increase from the roughly $270m valuation at which KKR acquired a majority stake in 2023. Mubadala Investment Company holds a minority interest in the business.
Founded in 2001, CoolIT initially focused on liquid cooling systems designed for gaming computers. In recent years, however, the company has repositioned itself to serve the rapidly expanding market for data centre infrastructure supporting artificial intelligence workloads.
The sharp growth in AI and cloud computing has triggered a wave of investment in data centre capacity, creating strong demand for specialised equipment such as liquid cooling technology. As hyperscalers race to expand infrastructure, suppliers across energy, industrials and technology have become increasingly attractive acquisition targets for private equity investors and strategic buyers.
KKR itself has been an active investor in the space. In 2021 the firm teamed up with Global Infrastructure Partners to acquire US data centre operator CyrusOne in a deal valued at roughly $15bn including debt.
The potential sale remains at an early stage and may not result in a deal.
