Racks of graphics processing units with a closed-loop liquid cooling system are seen inside an operational Microsoft data centre in Indonesia.YASUYOSHI CHIBA/AFP/Getty Images
Private equity giant KKR & Co. Inc. is looking to sell CoolIT Systems Inc., a supplier of liquid cooling technology to data centre builders, three years after buying control of the fast-growing Calgary manufacturer.
The 25-year-old company originally made liquid cooling technology for gaming computers before expanding in 2012 to serve the supercomputer business, and the burgeoning artificial intelligence business a decade later. It produces radiator-like systems consisting of coldplates and closed-loop liquid circuits used to cool graphics processing unit and central processing unit chips as well as artificial intelligence accelerators.
CoolIT has seen demand for its products soar during the massive global buildout of data centres that are supporting the widespread adoption and use of AI, with annual revenue now exceeding US$300-million.
CoolIT’s technology is used in seven of the top 10 super computers and the company’s customers including four of the top five server manufacturers and four of the 5 “hyperscaler” tech giants leading the data centre construction wave. The company has more than 650 employees and 120 patents and manufactures in Canada, China and Vietnam. It has a second headquarters and engineering lab in Taiwan.
Construction of data centres is booming, mostly in the U.S., to support the development and adoption of AI. Efficient cooling systems are crucial to these facilities. The sophisticated computer chips that are used to build and run AI models are getting more powerful and consuming more electricity, and can generate intense amounts of heat.
KKR, which has been an active buyer of data centres, has put the company up for sale along with minority owner Mubadala Investment Co., an Abu Dhabi-based sovereign wealth fund, although the process is in its early stages, said a source familiar with the matter.
The Globe and Mail is not identifying the source as they are not authorized to discuss the matter.
The Financial Times first reported on he matter, saying KKR was looking to sell CoolIT for more than US$3-billion
Spokespeople for both CoolIT and KKR declined to comment.