CoolIT Systems, a Calgary-based company specializing in liquid cooling for AI data centers, is soon to be acquired by Ecolab, a U.S. company, for $4.75 billion. This acquisition marks one of the largest tech deals in the city’s history. Following the acquisition, CoolIT’s 650 employees are set to receive significant cash payouts, ranging from approximately one year’s pay to over eight years’ worth. Employees, including Jerin Varghese, an engineer at CoolIT since 2021, are thrilled about the life-changing financial benefits.
Established in 2001 in a Calgary garage, CoolIT was acquired by KKR in 2023, with employees becoming owners of the business. The company has seen a surge in demand for its liquid cooling systems due to the increased use of data centers for AI workloads. CoolIT now serves hyperscalers and data center operators across more than 300 facilities worldwide.
Upon completion of the sale, CoolIT employees are expected to receive average payouts of around $240,000 US each, with long-serving employees potentially receiving up to $380,000 US. In addition to the financial rewards, employees will also benefit from pre-paid personal financial coaching and tax preparation services.
Ecolab anticipates CoolIT to generate approximately $550 million US in sales over the next year. The company believes that the liquid cooling market will grow substantially in the coming years. While concerns have been raised about the water consumption of data centers, CoolIT’s president, Patrick McGinn, is optimistic about the company’s future. He emphasized the importance of combining CoolIT’s liquid cooling technologies with Ecolab’s water chemistry services to create more efficient operating systems for customers.
The acquisition of CoolIT by Ecolab is seen as a significant milestone for Calgary’s tech industry, signaling the city’s potential to attract more capital and become a global tech hub. CoolIT’s growth and success in recent years have been attributed to the investments in Calgary and the increasing deployment of AI computers in data centers. Despite concerns about a potential AI bubble burst, CoolIT remains confident in the continued growth of its business and plans to hire more workers, including Calgarians, in the future.