Trane Technologies has entered into a definitive agreement to acquire LiquidStack, positioning the company to deepen its thermal management capabilities for modern data centers. LiquidStack is recognized for data center liquid-cooling technology designed for high-density compute environments, including generative AI and hyperscale infrastructure.
LiquidStack’s Role in High-Density Compute Cooling
LiquidStack develops liquid-cooling solutions to address rising chip power and heat density. Its portfolio includes high-density liquid cooling, direct-to-chip cooling, and immersion cooling architectures that enhance efficiency, sustainability, and performance in high-performance compute deployments. The company also cites an early milestone in immersion-cooled hyperscale design, noting that in 2018 it introduced the first immersion-cooled hyperscale data center, which was ranked the most energy-efficient data center in Hong Kong.
Broadening End-to-End Thermal Coverage
The acquisition builds on Trane Technologies’ 2023 minority investment in LiquidStack and is intended to strengthen Trane’s data center thermal management solutions across the cooling stack. Trane’s scope includes chillers, heat rejection, controls, liquid distribution, and on-chip cooling. By bringing LiquidStack into the organization, Trane aims to achieve broader integration between facility cooling infrastructure and chip-level thermal interfaces, with the stated goal of scaling LiquidStack’s technology globally.
Operations, Organization, and Leadership Continuity
The transaction includes LiquidStack’s global team, manufacturing and engineering operations, and research and development operations in Texas and Hong Kong. After closing, LiquidStack will operate globally within the Commercial HVAC business unit of the Trane Technologies Americas group. LiquidStack CEO Joe Capes will remain in a leadership role and continue to lead the LiquidStack business.
Integrated Cooling from Plant to Chip
Holly Paeper, President of Commercial HVAC Americas at Trane Technologies, highlighted the evolving thermal management needs in modern data centers driven by higher chip power and heat density and variable workloads. She emphasized the importance of integrated cooling solutions that can scale from the central plant to individual chips and adapt to changing performance demands. Paeper noted that LiquidStack’s direct-to-chip and immersion cooling technologies, combined with Trane’s system expertise and global presence, enhance their ability to provide comprehensive, future-proof thermal management across the entire data center ecosystem.
LiquidStack CEO Joe Capes stated that the company aims to innovate in advanced, sustainable liquid cooling solutions. He mentioned that joining Trane Technologies will enhance their ability to support next-generation AI workloads in demanding compute environments, leveraging Trane’s resources, scale, and global reach to accelerate growth and impact.
Timing
Trane also recently announced its acquisition of Stellar Energy, which is expected to close in the first quarter of 2026. The LiquidStack acquisition is expected to close in early 2026, subject to customary closing conditions.
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