HVAC firm Trane Technologies has acquired data center liquid cooling firm Stellar Energy Digital.

The company this week announced it had entered into a definitive agreement with Stellar Energy International, Ltd. to acquire the Stellar Energy Digital business, a provider of turnkey liquid-to-chip data center cooling solutions.

Terms were not shared. The deal is set to close in early 2026.

“This marks an exciting next chapter for Stellar Energy and our talented teams,” said Peter Gibson, executive chairman, Stellar Energy International.

“Transitioning the Digital business to Trane Technologies positions the business for significant growth and continued excellence, while our existing customers will benefit from expanded services and resources. We’ve worked closely and successfully with Trane Technologies for many years, and I am confident Stellar Energy’s powerful combination of bespoke solutions and scalable expertise will thrive within Trane Technologies.”

Headquartered in Jacksonville, Florida, Stellar Energy designs and builds modular cooling plants, central utility plants and coolant distribution units for liquid-cooled data centers and other corporate enterprises.

The acquisition will include Stellar Energy’s existing Digital business operations, including two assembly operations in Jacksonville, Florida, and its highly skilled team of approximately 700 employees. Stellar Energy Digital will operate within Trane America’s commercial HVAC business, retaining its brand, sales model, and existing customer relationships.

“The data center ecosystem is growing rapidly and evolving toward more agile, sustainable solutions, which is where Stellar Energy excels with leading co-engineered, modular solutions and a proven business model,” said Karin De Bondt, chief strategy officer, Trane Technologies.

“We are delighted to welcome the talented Stellar Energy Digital team as we jointly expand our leadership and commitment to this critical sector and other commercial applications. Together we are well-positioned to expand our capabilities and offerings and create long-term customer and shareholder value.”

Trane previously invested in liquid cooling provider LiquidStack in March 2023. It previously acquired Italian chiller manufacturer MTA in 2023.

Trane launched a 1MW coolant distribution unit earlier this year. It also offers a fan wall for data centers, as well as chillers, and launched a 300kW CRAH unit in August.

Morgan Stanley & Co. LLC served as the financial advisor to Trane Technologies on the transaction.