We performed commercial due diligence on a leading immersion cooling provider which offers hardware to improve data-centre efficiency and sustainability

Project experience | Transaction support


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The problem

  • Our client, the investment arm of a leading conglomerate, was evaluating investment opportunities in the data-centre cooling space
  • It engaged Analysys Mason to perform due diligence on a leading provider of immersion cooling hardware for data centres, in connection with a potential investment

The solution

  • We first performed a review of immersion cooling technology and its position in the data-centre cooling space
  • We assessed the pros and cons of immersion cooling, including its potential to enhance the energy efficiency of data centres and reduce their environmental footprint
  • We performed a market sizing of the addressable market for immersion cooling in the context of continued growth in data-centre demand and recognition of the need to improve data-centre sustainability given their high power consumption 
  • We assessed the target’s immersion cooling solution and its competitive positioning in the market 
  • We reviewed the target’s financial projections and evaluated their viability 
  • We then summarised our findings by providing an overview of key opportunities and risks presented by the investment

Figure: Projected data-centre net absorption addressed via immersion cooling (MW)

 

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The result

  • Our client used the report to support its own decision-making on the potential investment and its negotiations with the target company

We were engaged by our client, the investment arm of a leading conglomerate, to perform due diligence on a leading provider of immersion cooling hardware for data centres, in connection with a potential investment