Abu Dhabi’s Mubadala Investment Company is exiting its minority investment in CoolIT Systems, a leading provider of liquid cooling solutions for data centres, through a sale to Ecolab for $4.75 billion. This transaction, facilitated by KKR’s Global Impact Fund II, underscores a growing trend within the MENA region of sovereign capital strategically allocating to technologies underpinning global digital infrastructure. CoolIT’s liquid cooling technology directly addresses the escalating energy and water consumption challenges facing the rapidly expanding data centre sector, a critical component of the region’s broader technological ambitions and digital economy diversification efforts.
The strategic rationale behind Mubadala’s investment in CoolIT, made in 2023, centered on the conviction that liquid cooling would become indispensable for achieving sustainable data centre operations. This foresight aligns with the projected surge in global data centre energy demand, forecast to surpass the combined consumption of Germany and France by 2030. The environmental implications are significant, with water usage expected to increase dramatically. CoolIT’s technologies offer a substantial reduction in energy and water consumption – 30-40% less than traditional air-cooled systems – representing a key enabler for environmentally responsible digital growth. This demonstrates a proactive approach by a major MENA sovereign wealth fund to invest in solutions that mitigate the ecological footprint of critical technological infrastructure.
For the MENA region, this deal highlights both the potential for strategic capital deployment and the increasing importance of regional infrastructure development. The growth of hyperscale data centres across the Middle East and North Africa necessitates innovative cooling solutions to ensure operational efficiency and sustainability. Mubadala’s involvement in CoolIT, and now its exit, exemplifies a sophisticated approach to identifying and supporting such critical technologies. While the specific value of Mubadala’s stake remains undisclosed, the transaction’s scale reinforces the significant financial resources flowing into strategic tech investments within the region. Furthermore, CoolIT’s expansion of manufacturing capacity, driven in part by this investment, has regional implications for local job creation and the development of a more robust technology ecosystem.
The projected completion of this transaction in the third quarter of 2026 signals a continued focus on sustainable technology investments. The deal’s success, underscored by Ecolab’s acquisition, indicates growing market validation for liquid cooling technologies. This development has broader implications for the allocation of both sovereign and venture capital within the MENA region, potentially encouraging further investment in climate-conscious and infrastructure-supporting technologies. As data centre demand continues its exponential growth, solutions like CoolIT’s are poised to become increasingly vital for ensuring the long-term viability and environmental responsibility of the digital landscape in the Middle East and North Africa.
