According to CRN, battery and backup provider Eaton announced plans to acquire data center cooling business Boyd Thermal for $9.5 billion, with the deal expected to close in the second quarter of 2026. The acquisition price represents 22.5 times Boyd Thermal’s projected 2026 adjusted EBITDA, with Boyd forecasting $1.7 billion in sales for that year. Boyd Thermal, currently owned by Goldman Sachs Asset Management, employs over 5,000 people across manufacturing sites in North America, Asia, and Europe. Eaton CEO Paulo Ruiz emphasized that combining Boyd’s liquid cooling technology with Eaton’s power management capabilities will help customers manage increasing power demands more effectively, particularly in data centers. This strategic move comes as the data center industry faces unprecedented cooling challenges.
Sponsored content — provided for informational and promotional purposes.
The AI Power Crisis Drives Infrastructure Consolidation
This acquisition isn’t just about expanding product portfolios—it’s a direct response to the existential crisis facing data center operators. AI workloads are pushing power densities beyond what traditional air cooling can handle, with some AI servers now consuming 10-15kW per rack, compared to the 5-8kW that was considered high-density just a few years ago. Eaton recognizes that the future of data center infrastructure requires integrated solutions where power delivery and thermal management work as a single system. By controlling both the power chain and the cooling solution, Eaton can offer data center operators a comprehensive approach to managing the extreme thermal loads generated by AI accelerators and high-performance computing clusters.
Strategic Positioning Against Schneider Electric
The timing and scale of this acquisition reveal Eaton’s determination to counter Schneider Electric’s recent moves in the same space. When Schneider acquired Motivair for $850 million, it signaled the beginning of a consolidation phase in data center thermal management. Eaton’s $9.5 billion commitment demonstrates they’re not just matching competitors—they’re making a statement about market leadership. The premium valuation (22.5x EBITDA) suggests Eaton believes Boyd’s technology and market position are significantly more valuable than what was available through smaller acquisitions. This creates a clear bifurcation in the market between comprehensive infrastructure providers and specialized component manufacturers.
Financial Implications and Market Opportunity
From a financial perspective, the $9.5 billion price tag reflects enormous confidence in the data center cooling market’s growth trajectory. Boyd’s projected $1.7 billion in 2026 sales implies Eaton is paying approximately 5.6x revenue, which represents a substantial premium to typical industrial manufacturing multiples. However, this valuation makes sense when you consider that the data center liquid cooling market is projected to grow from $2.6 billion in 2023 to over $8 billion by 2028. Eaton is effectively buying immediate scale and market leadership in a high-growth segment that complements their existing power management business. The expected accretion to earnings in year two post-closing suggests significant cross-selling opportunities and operational synergies.
The Future of Integrated Data Center Infrastructure
Looking forward, this acquisition signals a fundamental shift in how data center infrastructure will be designed and procured. Instead of buying power distribution from one vendor and cooling from another, operators will increasingly seek integrated solutions that optimize both systems together. Eaton’s “chip-to-grid” power expertise combined with Boyd’s “chip-to-ambient” cooling architecture creates a compelling value proposition for hyperscalers and colocation providers struggling with power density constraints. The 2026 closing timeline allows for regulatory approvals and careful integration planning, but also positions Eaton perfectly for the next wave of AI infrastructure buildouts expected in the late 2020s. This move may trigger further consolidation as other power management companies seek to match Eaton’s comprehensive offering.
