How Wesco is Growing its Data Centre Cooling Footprint

Behind every data centre rack sits a growing need for reliable cooling and thermal management as operators handle higher workloads and denser infrastructure.

That demand is helping shape acquisition activity across the sector, with companies looking to strengthen specialist capabilities and deepen their reach in key growth markets.

Wesco International is the latest to make such a move.

The B2B distribution, logistics services and supply chain solutions provider has entered into a definitive agreement to acquire Singapore-based Newark Engineering Group, a specialist in engineered cooling solutions and lifecycle services for data centres.

The deal gives Wesco a stronger position in a part of the data centre market that is becoming increasingly important as facilities seek to balance reliability and operational efficiency.

John Engel, Chairman, President and Chief Executive Officer of Wesco, says: “Newark provides integrated, turnkey cooling solutions, with strong partnerships and a blue-chip customer base that includes global technology and Fortune 500 companies.”

He adds: “This acquisition expands our participation in the data centre value chain, particularly in engineered cooling and lifecycle services, and provides a strong growth platform in Southeast Asia.

“It's a service-led business with attractive margins, and we see a clear path to above-market growth by leveraging Wesco's global customer relationships and expanding solutions portfolio.

“We expect this acquisition to enhance our growth profile, support margin expansion and generate attractive returns within the first year.”

Newark brings cooling capabilities

The acquisition highlights the growing focus on thermal management across the data centre industry.

As facilities become more power-dense, cooling systems are critical to maintaining uptime and ensuring equipment performs reliably.

Newark specialises in the design, supply, installation, commissioning and maintenance of thermal management systems used in mission-critical environments.

These systems support data centre operations throughout their lifecycle, from initial planning and deployment through to ongoing optimisation and maintenance.

The addition extends Wesco's its presence beyond traditional distribution and supply chain services into specialist cooling infrastructure and lifecycle support.

The company says the transaction expands its capabilities in engineered cooling while strengthening its position in Southeast Asia, one of the world's fastest-growing data centre regions.

Newark serves customers across Singapore, Malaysia and Indonesia, markets that continue to attract investment from hyperscale cloud providers, enterprise operators and colocation companies.

Its offering spans multiple stages of data centre development and operation, giving customers access to integrated support rather than standalone products or services.

That expertise is expected to complement Wesco's broader portfolio of electrical, communications and supply chain solutions.

Strengthening Southeast Asia operations

The transaction also reflects the strategic importance of Southeast Asia to global data centre growth.

Singapore remains one of the region's most established digital infrastructure hubs, while neighbouring Malaysia and Indonesia continue to see strong investment activity as operators seek additional capacity and geographic diversification.

By acquiring Newark, Wesco gains an established regional platform and customer network.

The company expects the combination to create commercial opportunities by linking Newark's customer relationships with Wesco's global account coverage.

Among the target customer groups are hyperscale operators, enterprise data centre organisations and colocation providers.

Wesco also expects to increase its share of customer spending through cross-selling opportunities across its wider solutions portfolio.

The move comes as data centre operators seek integrated partners capable of supporting infrastructure requirements across multiple disciplines, including power, networking, logistics and cooling.

Bringing these capabilities together under one organisation may help simplify procurement and service delivery for customers expanding across the region.

Deal value and growth plans

Under the terms of the agreement, Wesco will acquire 100% of Newark in a cash-free, debt-free transaction valued at 175m Singapore dollars, approximately $136m.

Newark generated around $60m in revenue during 2025. Wesco says the business is EBITDA margin accretive to its portfolio and is being acquired at a purchase multiple below Wesco's current trading multiple.

The provides access to a larger global platform and broader market reach for Newark.

Fanny Lee, Managing Director of Newark Engineering Group, says: “Partnering with Wesco will accelerate our growth and expand our ability to serve data centre customers across Southeast Asia.

“Wesco's global platform and complementary capabilities will allow us to broaden our solutions portfolio, access new customers and scale the business.”

The acquisition remains subject to customary regulatory approvals and closing conditions. Wesco expects the transaction to close during the third quarter of 2026.