Trane to acquire LiquidStack in data centre cooling push

Trane Technologies has agreed to buy LiquidStack, a specialist in liquid cooling systems for data centres, expanding Trane's presence in thermal management for high-density computing.

The companies have signed a definitive agreement. LiquidStack is headquartered in Carrollton, Texas, and operates globally. Financial terms were not disclosed. The transaction is expected to close in early 2026, subject to customary closing conditions.

Liquid cooling is a growing focus for data centre operators as chips used for artificial intelligence and other intensive workloads generate more heat in smaller spaces. Operators are also reassessing cooling strategies as power density rises at the rack and chip level, and as workload patterns shift more frequently.

Trane, best known for commercial HVAC equipment and services, has been building a broader portfolio for data centre cooling. It said the acquisition would extend its offering across data centre thermal management, from central cooling plant equipment to chip-level cooling.

What LiquidStack does

LiquidStack supplies liquid cooling technology designed for high-density environments. Its portfolio includes direct-to-chip systems, which circulate coolant to cold plates mounted on processors, and immersion cooling systems, which submerge servers in specialised fluid.

These approaches can reduce reliance on traditional air cooling in parts of a facility. They can also change how heat is captured and rejected from the data hall, affecting planning for chillers, pumping, heat rejection equipment, and control systems.

LiquidStack's technology is used by data centres and high-performance computing organisations, according to Trane, which described the deal as a response to demand from generative AI and hyperscale computing environments.

Integration plans

Once the transaction closes, LiquidStack will operate within Trane's Commercial HVAC business unit, inside the Trane Technologies Americas segment. The acquisition includes LiquidStack's manufacturing, engineering, and research and development operations in Texas and Hong Kong, along with its global team.

Trane previously made a minority investment in LiquidStack in 2023, giving it closer exposure to a part of the market where large equipment suppliers and facilities specialists are competing to become primary providers for new data centre build programmes.

Joe Capes, LiquidStack's co-founder and chief executive, will join Trane in a leadership role and continue to lead the LiquidStack business.

Market context

Operators are taking varied approaches to next-generation cooling. Some sites use liquid cooling for a limited portion of IT load. Others design facilities around liquid as the primary method for heat removal in high-density halls.

These choices have knock-on effects across the data centre ecosystem. Cooling distribution needs change when heat is removed at the rack or chip. Heat rejection strategies can also shift depending on whether facilities are optimised around warm-water loops, refrigerant-based systems, or hybrid designs.

Large HVAC suppliers have been positioning around this shift, focusing on integrating equipment, controls, and service. Trane said it would combine LiquidStack's direct-to-chip and immersion offerings with its existing systems and global presence.

"Rising chip-level power and heat densities combined with increasingly variable workloads are redefining thermal management requirements inside modern data centers," said Holly Paeper, president of Commercial HVAC Americas at Trane Technologies.

"Customers need integrated cooling solutions that scale from the central plant to the chip and can adapt as performance demands continue to evolve. LiquidStack's direct-to-chip and immersion cooling capabilities and talent, combined with Trane's systems expertise and global footprint, strengthen our ability to deliver end-to-end, future-ready thermal management across the entire data center ecosystem," Paeper said.

LiquidStack said the combination would increase the scale at which it can pursue deployments in demanding compute environments.

"LiquidStack has been on a mission to innovate and deliver the most advanced, powerful and sustainable liquid cooling solutions," Capes said.

"Joining Trane Technologies enables us to accelerate that mission with the resources, scale and global reach needed to power next-generation AI workloads in the most demanding compute environments. We are very excited to expand our impact and continue our growth as part of Trane Technologies," he said.

The deal follows Trane's recently announced agreement to acquire Stellar Energy, which it expects to close in the first quarter of 2026.