Acquisition
Trane Technologies to Acquire LiquidStack to Boost Data Center Cooling Solutions
•February 18, 2026
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Why It Matters
The deal equips Trane with advanced liquid‑cooling capabilities essential for scaling AI and hyperscale compute, addressing rising power‑density challenges while enhancing sustainability and performance across the data‑center ecosystem.
Key Takeaways
- •Trane to acquire LiquidStack, closing early 2026
- •Acquisition adds direct-to-chip and immersion cooling tech
- •Enhances Trane’s full‑service data‑center cooling portfolio
- •Targets high‑density AI and hyperscale workloads
- •LiquidStack team integrates into Trane’s Commercial HVAC unit
Pulse Analysis
Data‑center operators are confronting unprecedented thermal pressures as generative AI and hyperscale workloads push chip power densities beyond traditional air‑cooling limits. Liquid cooling, particularly direct‑to‑chip and immersion methods, offers superior heat‑removal efficiency, lower energy consumption, and a smaller physical footprint. Industry analysts predict that by 2030, liquid‑cooling solutions could serve more than half of new high‑performance compute installations, driven by sustainability mandates and the economics of power‑cost reduction.
Trane Technologies’ acquisition of LiquidStack aligns with its strategy to broaden the HVAC portfolio beyond conventional chillers into next‑generation thermal‑management services. By integrating LiquidStack’s patented cooling modules and its engineering talent, Trane can offer a unified stack—from central plant chillers to on‑chip heat exchangers—under a single commercial contract. The global footprint of LiquidStack’s manufacturing in Texas and R&D in Hong Kong accelerates Trane’s ability to serve customers across North America and Asia‑Pacific, leveraging existing supply chains while scaling production to meet surging demand for AI‑ready infrastructure.
The transaction signals a shift in the data‑center cooling market toward consolidated, end‑to‑end solutions that blend sustainability with performance. Competitors such as Schneider Electric and Vertiv are also investing in liquid‑cooling capabilities, but Trane’s combined expertise in HVAC systems and now liquid‑cooling gives it a differentiated value proposition. As enterprises prioritize carbon‑neutral compute, the integrated offering is likely to attract contracts that require both energy‑efficient cooling and the flexibility to adapt to variable workloads, positioning Trane for long‑term growth in the evolving compute landscape.
Deal Summary
Trane Technologies announced a definitive agreement to acquire LiquidStack, a liquid‑cooling technology provider for data centers. The acquisition will expand Trane’s thermal‑management portfolio and integrate LiquidStack’s solutions globally, targeting high‑density AI workloads. Financial terms were undisclosed, with closing expected in early 2026.
Article
Source: StorageNewsletter
Strengthens Trane Technologies' position as a full‑service partner for data‑center cooling – Scales LiquidStack's advanced liquid‑cooling technology to meet next‑gen high‑density AI‑scale workloads
Press Release edited by StorageNewsletter.com – February 18 2026, 2:10 pm
Trane Technologies, a climate innovator, announced that it has entered into a definitive agreement to acquire LiquidStack, a player in liquid‑cooling technology for data centers, headquartered in Carrollton, Texas.
LiquidStack solutions are engineered to meet the unprecedented demands of generative AI and hyperscale computing. Data centers and high‑performance compute organizations rely on LiquidStack for high‑density liquid, direct‑to‑chip and immersion cooling solutions that improve efficiency, sustainability and performance.
Building on Trane Technologies’ minority investment in LiquidStack in 2023, this acquisition enhances Trane Technologies’ data‑center thermal‑management solutions, spanning chillers, heat rejection, controls, liquid distribution, and on‑chip cooling, and will scale LiquidStack’s pioneering technology globally.
The acquisition includes LiquidStack’s highly skilled global team and manufacturing, engineering and R&D operations in Texas and Hong Kong. Upon closing, LiquidStack will operate globally within the Commercial HVAC business unit of the Trane Technologies Americas segment.
“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, Commercial HVAC Americas, 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.”
LiquidStack co‑founder and CEO Joe Capes will join Trane Technologies in a leadership role and will continue to lead the LiquidStack business.
“LiquidStack has been on a mission to innovate and deliver the most advanced, powerful and sustainable liquid‑cooling solutions,” said Joe Capes, CEO, LiquidStack. “Joining Trane Technologies enables us to accelerate that mission with the resources, scale and global reach needed to power next‑gen 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.”
The transaction is expected to close in early 2026, subject to closing conditions. Financial terms were not disclosed.
This bolt‑on acquisition follows Trane Technologies’ proven model of adding leading technologies that enhance its core businesses and scaling them to deliver strong returns over time.
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