Investment firm KKR is reportedly exploring the potential sale of a specialized cooling technology company that could fetch more than $3 billion, according to a Financial Times report published Sunday.
The private equity giant is collaborating with financial advisors on the possible divestiture of CoolIT Systems, sources familiar with the discussions told the publication. However, the potential transaction remains in early stages with no certainty that a deal will be completed.
Several prospective purchasers have already been identified as possible participants in the bidding process, the report indicated. Neither KKR nor CoolIT Systems provided immediate responses to requests for comment when contacted outside normal business hours, and Reuters was unable to independently confirm the details.
The growing demand for data centers has created significant challenges for cooling systems, as advanced artificial intelligence and cloud computing servers require substantial electrical power that generates extreme heat levels beyond what conventional air-based cooling can effectively manage.
This surge in data center requirements has triggered numerous transactions throughout the sector as organizations compete to expand infrastructure capacity to address the increasing power and cooling demands.
According to its corporate website, CoolIT focuses on creating, engineering and producing liquid cooling solutions specifically designed for artificial intelligence and computing applications. KKR completed its acquisition of the company in 2023.
