Dive Brief:

• Water-from-air company AirJoule Technologies on Monday acquired BitSink, an AI data center cooling, electrical distribution and racking infrastructure company for $27 million to expand its reach into the AI and high-performance computing infrastructure market. 
• BitSink designs and manufacturers liquid cooling, precision air handling and electrical switchgear for high-density AI compute facilities. AirJoule, through a joint venture with GE Vernova and partnership with Carrier, provides solutions that pull water from humid air.
• BitSink’s closed-loop cooling system makes available the type of low-grade waste heat that AirJoule uses in its water regeneration process, “creating significant integration opportunity between the two product lines, AirJoule said in a release. 

Dive Insight:

The acquisition comes at a time when water availability and consumption have become important criteria and considerations for data center development and operations. 

AI and high-performance compute data centers are escalating infrastructure requirements. Next generation chips require rack densities beyond the practical limits of air cooling, spurring the need for advanced technologies such as liquid cooling, according to AFCOM’s 2026 State of the Data Center report.

“AI racks draw 40 to 150 kilowatts, compared with 5 to 10 [kW] for a traditional server,” Matt Jare, founder and CEO of AirJoule Technologies Corporation, told Facilities Dive in an email. “That growing rack density has pushed the industry past the practical limits of air cooling and made liquid cooling a requirement.”

Higher rack densities are driving projections that the data center liquid cooling market will balloon from $3.7 billion in 2025 to $11.5 billion in 2030, said AirJoule, citing Bloomberg Intelligence, which also expects direct-to-chip making up almost 90% of liquid-cooling architectures. 

BitSink designs, manufactures and installs cooling systems that enable liquid cooling for high-density workloads, including integrated modular data center blocks, per the release. 

Liquid-cooled systems are also being designed to run at higher coolant temperatures, with NVIDIA’s latest AI-server architecture, for example, using outdoor dry coolers in a closed loop to reject heat from a 45-degree-Celsius cooling liquid, according to Jare. 

”As density keeps climbing, the industry keeps moving toward the architecture that BitSink supports,” Jare said. “Higher loop temperatures make dry heat rejection practical at higher densities, cut water consumption further, and produce more of the waste heat that AirJoule Prime runs on.” 

Greater electrical loads are also creating supply chain bottlenecks for switchgear, power distribution and related infrastructure, the release says.

“BitSink manufacturers UL-listed switchboards and control panels, power distribution units and eqiopment racks in the U.S., and it delivers them alongside its cooling systems,” Jare said. “For a facilities team, that means one supplier, one design package and one point of accountability instead of coordinating separate cooling and electrical vendors.” 

AirJoule says BitSink gives it an established operating business with U.S. manufacturing capabilities, a portfolio of deployed cooling and electrical infrastructure products and existing customer relationships. 

As part of AirJoule Technologies, BitSink will focus on emerging modular and edge deployments as well as a very large base of high-density crypto-mining sites that are being converted to AI and high-performance computing applications, Jare said. 

“BitSink already has customer relationships with many Bitcoin miners who need to upgrade their cooling systems as part of this conversion, Jare said. “Over time, there is an opportunity to pair BitSink’s closed-loop liquid cooling with the AirJoule technology so that a single platform can deliver cooling, electrical equipment, and water for the operator.” 

“This transaction delivers commercial revenue contribution and substantial long-term potential, while also creating a natural platform to combine BitSink’s cooling technology with our AirJoule atmospheric water generation capabilities into an integrated offering for the AI and HPC data center market,” Stephen Pang, chief financial officer at AirJoule Technologies, said in a statement. 

The transaction accelerates AirJoule Technologies’  initiatives to address data center infrastructure demand through its joint venture with GE Vernova. In June, the joint venture commissioned its first AirJoule Prime AWG system, which uses low-grade waste heat to produce about 2,000 liters of distilled water per day, at its manufacturing facility in Newark, Delaware. The system will be deployed in a European data center in the fourth quarter through a partnership with the Net Zero Innovation Hub for Data Centers, it said in its release.

In announcing its first-quarter earnings, AirJoule Technologies said its laying the foundation for initial commercialization this year and for scaled commercial activity in 2027.