Calgary-headquartered CoolIT Systems, known for its liquid cooling solutions for AI data centers, is poised for acquisition by Ecolab, a U.S. company, for a substantial $4.75 billion US, marking one of the most significant tech transactions in the city’s history. The deal will also bring substantial cash rewards to CoolIT’s 650 employees, with payouts ranging from around one year to over eight years’ worth of annual salaries, eliciting joy among the workforce.
Jerin Varghese, an engineer at CoolIT since 2021, expressed his excitement about the life-changing impact of the money, outlining plans to pay off the mortgage, invest, and provide for his family. The company, founded in 2001 in a Calgary garage, became employee-owned after being acquired by global investment firm KKR in 2023. CoolIT’s expertise in liquid cooling technology has positioned it well to cater to the surging demand for cooling systems in data centers handling large AI workloads.
Currently serving over 300 facilities globally, CoolIT is set to be a valuable addition to Ecolab, with anticipated sales of approximately $550 million US over the next year. The acquisition is expected to yield substantial returns for KKR, with CoolIT employees projected to receive average payouts of about $240,000 US, and those with longer tenures possibly receiving up to $380,000 US. Beyond monetary rewards, employees will benefit from financial coaching and tax services.
Amid concerns about the water consumption of data centers, particularly related to liquid cooling, CoolIT’s President and COO, Patrick McGinn, acknowledged the industry’s focus on water conservation. McGinn emphasized the potential for more water-efficient data center designs going forward, highlighting CoolIT’s direct-to-chip cooling technology as a sustainable solution compared to traditional water-intensive systems.
The acquisition underscores Calgary’s evolving economic landscape towards AI technology, drawing praise from Brad Parry, president and CEO of Calgary Economic Development, who sees it as a catalyst for increased investment in the city. Despite speculations about an AI bubble, CoolIT remains optimistic about sustained growth, buoyed by the robust demand for data center solutions. McGinn envisions continued expansion at CoolIT, with ongoing hiring initiatives to support the company’s growth trajectory. The success of CoolIT exemplifies Calgary’s potential as a hub for global tech innovation and entrepreneurship.
