KKR is targeting a 10-fold return on a potential multibillion-dollar sale of CoolIT Systems, a company that provides cooling equipment for data centers. The private equity giant is working with advisers on a sale that could value CoolIT at over $3 billion, a massive jump from the $270 million valuation when KKR bought a majority stake in 2023. Abu Dhabi's Mubadala owns a minority stake.

CoolIT pivoted from gaming computer cooling systems to supporting AI infrastructure, capitalizing on the vast build-out of data center infrastructure. The AI boom has sparked a surge in dealmaking beyond the technology sector, with significant activity in energy and industrial deals involving suppliers to AI infrastructure. A potential sale is in early stages with no guarantees of a transaction.

Nearly 3,000 data centers are under construction or planned in the US, adding to the 4,000 existing sites, boosting potential demand for CoolIT's services. However, investors have begun to fret about the return on investment from the huge amounts of cash pumped into building data centers by hyperscalers and infrastructure funds. The cooling equipment market has seen major consolidation, with industrial manufacturer Eaton paying $9.5 billion to buy Boyd Corporation's thermal business last year.