Ecolab’s CoolIT takeover puts AI data-center cooling in focus

A water company buys into the AI heat problem

Ecolab said it closed its roughly $4.75 billion purchase of CoolIT Systems on July 2, earlier than the company had expected, adding direct liquid cooling hardware for high-density data centers.tradingview CoolIT’s year-to-date sales have grown by more than 100%, a surge Ecolab tied to demand from AI facilities that need more efficient ways to move heat away from chips.[0] Zacks, in a report carried by TradingView, framed the deal as a step toward combining CoolIT’s cooling gear with Ecolab’s water treatment and digital monitoring business.ecolab

The pitch is a full cooling stack

The near-term product plan centers on an end-to-end 3D TRASAR cooling platform that Ecolab plans to introduce at the Supercomputing conference in Chicago in November 2026.yahoo The system is set to combine CoolIT cooling distribution units and cold plates with Ecolab’s optimization software, cooling fluids and closed-loop designs aimed at reducing cooling power demand and water use.yahoo

NVIDIA engineers Ali Heydari and Saket Karajgikar said the chipmaker has worked with Ecolab and CoolIT on coolant qualification, coolant health monitoring, cooling infrastructure and next-generation AI factory technologies.tradingview When Ecolab announced the agreement in March, it said CoolIT was expected to generate about $550 million in sales over the next 12 months and that the transaction valued the company at 29 times estimated next-12-month adjusted EBITDA.smartwatermagazine

Growth targets now carry an earnings drag

Ecolab’s Global High-Tech business has expanded from about $150 million in annual sales in 2021 to nearly $1.5 billion in 2026 annualized sales after the additions of Ovivo and CoolIT.tradingview The company now targets $4 billion in annual sales for the unit by 2030, with operating income margins of 25% and growth above 25% a year.[0]

The price of that expansion is a short-term hit to earnings. Ecolab cut its 2026 adjusted diluted EPS outlook to $8.03 to $8.23 after incorporating CoolIT-related amortization and financing costs, while projecting a $0.20-per-share drag in each of the third and fourth quarters.indianchemicalnews Investing.com noted the deal comes as Ecolab trades at a rich earnings multiple, while Ecolab said adjusted EPS growth should return to a 12% to 15% range beyond 2026 as CoolIT contributes more and older amortization rolls off.indianchemicalnews