Ecolab (ECL) is well-positioned to benefit from rising AI-driven demand for data center cooling following its planned acquisition of CoolIT Systems, RBC Capital Markets said in a Monday note.

RBC said the deal enhances Ecolab's position in the rapidly expanding direct-to-chip liquid cooling market for AI data centers, which it estimates at about $7 billion and growing roughly 30% annually.

According to the report, the transaction could lift Ecolab's organic revenue growth by roughly one percentage point after the first year and help expand its Global High-Tech segment to about $1.5 billion in revenue, growing around 20% annually with operating margins above 20%.

Ecolab plans to acquire CoolIT Systems for $4.75 billion in a deal expected to close in Q3 of 2026. RBC said the transaction could cause low-to-mid single-digit earnings per share dilution in 2026, though the company reaffirmed its 12% to 15% earnings growth outlook for 2027.

RBC maintained its outperform rating on the stock with a price target of $337.

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