Trane Technologies announced a definitive agreement to acquire LiquidStack, a Texas‑based liquid‑cooling specialist, for an undisclosed price. The deal will bring LiquidStack’s direct‑to‑chip and immersion‑cooling technologies, along with its engineering, manufacturing and R&D teams in Texas and Hong Kong, into Trane’s Commercial HVAC Americas business unit.
The acquisition is part of Trane’s broader strategy to become a full‑service partner for high‑density data‑center cooling. By integrating LiquidStack’s liquid‑cooling platform, Trane will offer end‑to‑end thermal‑management solutions that span central plant equipment, heat‑rejection units, controls, liquid distribution and on‑chip cooling for hyperscale facilities. The move positions Trane to capture a larger share of the rapidly growing AI and hyperscale market, where power densities are rising and air‑cooled systems are reaching their limits.
LiquidStack’s technology delivers higher power densities and greater energy efficiency than conventional air‑cooled systems. The company’s direct‑to‑chip and immersion‑cooling solutions are designed for next‑generation AI workloads, and its GigaModular CDU platform scales to meet the needs of hyperscale operators. Trane’s prior minority investment in LiquidStack in 2023 gave it early insight into the technology and market, and the full acquisition will accelerate deployment of LiquidStack’s solutions worldwide.
Trane’s Q4 2025 earnings, released on January 29 2026, showed a strong performance that set the stage for the acquisition. Adjusted earnings per share rose to $2.86 from $2.82, a beat of $0.04, driven by disciplined cost management and a 35% year‑over‑year increase in commercial HVAC bookings. Revenue reached $5.15 billion, up 1.1% from $5.09 billion, supported by record backlog of $7.8 billion and robust demand in the Americas commercial HVAC segment, where applied bookings surged 120% YoY. The company guided 2026 revenue growth of 6‑7% organic and 8.5‑9.5% total, and adjusted EPS of $14.65‑$14.85, reflecting confidence in continued demand and margin stability.
Management highlighted that the acquisition will strengthen Trane’s end‑to‑end offering and accelerate the deployment of its AI‑driven services layer. President of Commercial HVAC Americas Holly Paeper said the integration would “scale from the central plant to the chip, giving customers a single partner for all cooling needs.” CEO Dave Regnery noted that the deal builds on Trane’s execution in the commercial HVAC space and positions the company to capture higher‑margin data‑center services.
The transaction is expected to close in early 2026, subject to customary closing conditions. While financial terms were not disclosed, the deal aligns with Trane’s strategy to combine hardware expertise with advanced cooling technologies to capture a larger share of the high‑margin data‑center services market.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.