Why Blackstone is Investing in ACT for Data Centre Cooling

Blackstone has acquired a majority stake in Advanced Cooling Technologies (ACT), a thermal management firm whose technologies support data centre and high-performance computing cooling.

ACT, founded in 2003 and headquartered in Pennsylvania, designs and manufactures thermal management and energy efficiency technologies used in advanced computing and mission-critical systems.

The company produces a range of solutions that support these requirements. These include two-phase liquid cooling, heat pipes, phase change materials, cold plates, environmental control units and composite thermal and structural systems. 

Under the agreement, ACT’s executive leadership team remains in place and continues to hold a meaningful ownership stake in the business.

Cooling technology for high-density data centres

Data centres increasingly face rising heat loads as computing power grows. AI workloads, high-performance computing clusters and modern processors consume more electricity and generate more heat than previous generations of hardware.

This trend creates growing demand for advanced cooling solutions capable of maintaining stable operating temperatures in densely packed server environments. Two-phase liquid cooling uses a cooling fluid that changes from liquid to vapour as it absorbs heat. This phase change allows heat to move away from processors more efficiently than traditional air-based systems.

Heat pipes, another technology developed by ACT, use sealed tubes filled with a working fluid to transfer heat rapidly from one location to another. Cold plates sit directly on processors or chips and move heat into a circulating liquid system.

Mark Zhu, Managing Director at Blackstone, says: "We believe ACT is well positioned for accelerated growth given the increasing importance of thermal management amid rising power intensity and AI innovation.

"This includes the company's pioneering work helping meet the next generation of data center and high-performance chip cooling requirements.

"We are excited to partner with Jon and the entire ACT management team to support the company's continued technological leadership and expansion of their manufacturing capacity amidst record customer demand."

Investment aligned with energy efficiency demand

Blackstone’s investment strategy through its Energy Transition Partners platform focuses on infrastructure and technology businesses linked to power demand and energy efficiency.

Data centres represent a key area within this theme as global digital activity continues to increase electricity consumption in computing infrastructure.

Efficient thermal management plays a direct role in reducing energy waste in data centres. Cooling systems can account for a large share of facility power use.

More efficient heat removal technologies allow operators to manage higher compute density while controlling overall energy consumption.

David Foley, Global Head of Blackstone Energy Transition Partners, says: "Our investment strategy focuses on identifying businesses we believe are well positioned to benefit from long-term power demand growth and the need to manage power and energy more efficiently.

"We have a long track record of partnering with founder-led companies, and we look forward to supporting Jon and the ACT team with capital and other resources as they continue to build on the company's strong foundation in a rapidly growing market."

The capital investment supports ACT’s plans to expand manufacturing capacity and strengthen its engineering capabilities. 

ACT leadership remains in place

ACT’s management team continues to lead the company following the transaction and remains a shareholder in the business. The structure keeps operational leadership within the organisation while providing financial support from Blackstone for expansion.

Jon Zuo, CEO and Co-Founder of ACT, says the agreement marks a new stage for the company as it builds on its existing engineering capabilities.

He says: "Every one of us is excited about this new chapter of ACT.

"With the support of our Blackstone partners, we will continue driving our core values of Innovation, Teamwork, and Customer Care, with the goal of building ACT into the world's leading thermal management company."

The transaction is expected to close in the second quarter, subject to customary regulatory and completion conditions.

Once completed, the investment places ACT within Blackstone’s portfolio of companies linked to power infrastructure, energy efficiency and digital systems that support modern computing environments.