KKR buys CoolIT Systems as demand rises for liquid cooling in AI data centers

In short: KKR bought CoolIT Systems in July 2023, betting that more powerful AI computers will need liquid cooling instead of fans.

What happened

KKR, a private investment firm, acquired CoolIT Systems in July 2023. CoolIT makes direct liquid cooling for computer chips, which means it moves heat away using liquid flowing through cold plates (like a car radiator, but for servers).

CoolIT says its systems are already cooling more than 5 million GPUs and CPUs worldwide. GPUs and CPUs are the main chips that do the heavy work in AI and other computing.

The deal comes as AI hardware gets much hotter. Some next-generation AI chips are expected to pass 1,000 watts of heat per chip, and entire server racks can approach 1 megawatt, which is roughly like running a small building’s worth of power in one cabinet. In those conditions, blowing air with fans can stop being enough, so data centers look to liquid cooling.

CoolIT has been expanding to meet that demand. The company says its manufacturing capacity has grown more than 25 times from its original size, led by its 112,000 square foot Starfield facility in Calgary, plus added capacity in Asia. It has also opened Liquid Lab Innovation Centers in Calgary and Taipei to shorten product development, moving from an idea to production-ready equipment in months.

Why it matters

AI services run in large data centers, and those buildings face rising costs and limits around power and heat. Better cooling can help keep systems reliable and can reduce wasted energy, which affects the price and availability of AI-powered products people use every day.

Source: Financial Times