KKR is exploring a potential sale of CoolIT Systems that could value the business at more than $3bn, according to a report by the Financial Times.

KKR acquired a majority stake in CoolIT in 2023 at a valuation of approximately $270m. The company is now expected to command a significantly higher valuation amid strong growth in the data centre cooling market. 

Mubadala holds a minority stake in the business.

CoolIT develops liquid cooling systems used in data centres. The company originally produced cooling technology for gaming computers before pivoting toward infrastructure supporting artificial intelligence workloads.

The potential transaction comes as global investment in AI infrastructure drives strong demand for data centre equipment. Nearly 4,000 data centres are currently operating in the US, with almost 3,000 additional sites planned or under construction.

The boom in AI infrastructure has triggered increased dealmaking across the technology supply chain. Industrial groups and infrastructure investors are targeting companies that provide components and services required to support data centre expansion.

KKR has been among the most active investors in the sector. The firm previously partnered with Global Infrastructure Partners to take CyrusOne private in a transaction valued at about $15bn including debt.

Advisers are working with KKR on the potential sale of CoolIT, though discussions remain at an early stage and no deal is guaranteed.

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