Blackstone announced on September 10, 2026, its agreement to acquire Flow Control Holdings (FCH), a key supplier of highly engineered components for data center liquid cooling systems, as well as the food, beverage, and pharmaceutical markets. The acquisition is being made by private equity funds affiliated with Blackstone Capital Partners and Blackstone Energy Transition Partners. Audax Private Equity, the seller, will retain a minority equity stake in FCH and continue to partner with Blackstone and FCH's management to support the company's growth.
FCH, headquartered in Cincinnati, Ohio, specializes in manufacturing components such as precision stainless fittings, valves, strainers, coolant hoses, and custom-fabricated assemblies. These products are crucial for original equipment manufacturers (OEMs) and hyperscalers in building coolant distribution units (CDUs), in-row manifolds, and secondary fluid networks for data centers. The company operates through brands like Steel & O’Brien, Ace Sanitary, and Strahman Group, with a dedicated Data Cooling division.
This acquisition highlights Blackstone's strategic focus on digital infrastructure, particularly the rapidly expanding need for efficient cooling solutions in AI-driven data centers. Liquid cooling is significantly more energy-efficient than traditional air cooling, enabling data centers to reduce CO2 emissions and improve power usage effectiveness. Analysts estimate the data center liquid cooling market to be approximately $3 billion in 2025 and projected to approach $7 billion by 2029, driven by the increasing power demands of AI workloads, which can reach 60 to 120 kilowatts per server rack. Blackstone's investment in FCH is its second in data center thermal management within six months, following the acquisition of Advanced Cooling Technologies, which builds finished thermal hardware.
While the financial terms of the transaction were not disclosed, the deal is expected to close in the fourth quarter of 2026. This move further strengthens Blackstone's position in the digital infrastructure sector, complementing its backing of data center operator AirTrunk, which is reportedly seeking a $2 billion loan facility for a potential Singapore REIT listing. Blackstone's strategy aims to gain a comprehensive hold on the digital infrastructure theme, leveraging its private equity, real estate, and credit funds to address the growing demands of AI-focused data center buildouts.
