Chemours partners with DataVolt on cooling tech for data centers

WILMINGTON, DE - The Chemours Company (NYSE: CC), known for its specialty chemicals and currently trading near its 52-week low of $9.33, has entered into a strategic partnership with DataVolt, a firm specializing in sustainable digital infrastructure. The collaboration, announced today, aims to enhance data center efficiency and sustainability through innovative liquid cooling technologies. According to InvestingPro data, Chemours has seen its stock decline by about 59% over the past year, making this strategic move particularly significant for potential recovery.

Chemours and DataVolt will work together on the development of two-phase direct-to-chip and two-phase immersion cooling solutions, leveraging Chemours’ portfolio of Opteon™ dielectric fluids, which feature ultra-low global warming potential. The focus is on addressing the growing demands of artificial intelligence (AI) and next-generation chips, with the intent to reduce data centers’ total cost of ownership and environmental impact while improving performance. With a significant debt burden of $4.38 billion and a debt-to-equity ratio of 7.57, as revealed by InvestingPro, this partnership could be crucial for strengthening Chemours’ market position.

Denise Dignam, President and CEO of Chemours, highlighted the importance of the partnership in advancing the company’s liquid cooling roadmap and driving sustainable innovation in data centers. Rajit Nanda, CEO of DataVolt, expressed enthusiasm for the agreement, emphasizing the role of liquid cooling technologies in building eco-friendly, high-performance AI data centers.

The use of Chemours’ Opteon™ two-phase immersion cooling fluid is cited as offering significant benefits, including up to 90% reduction in cooling energy, up to 40% reduction in total cost of ownership, and nearly eliminating water use. These advancements also support increased computing capacity and density per square foot without compromising performance and contribute to circularity by allowing heat and some fluids to be recovered and reused.

Chemours, headquartered in Wilmington, Delaware, serves customers in approximately 110 countries with a workforce of around 6,000 employees. DataVolt, with its global ambitions, operates from multiple international locations and focuses on serving hyperscalers, large enterprises, and government institutions.

This initiative is part of Chemours’ broader efforts to provide comprehensive cooling solutions for AI and advanced digital infrastructure. The collaboration with DataVolt underscores both companies’ commitment to innovation and sustainability in the rapidly evolving data center market. With an EBITDA of $715 million and a market capitalization of $1.69 billion, Chemours shows potential despite recent challenges. For deeper insights into Chemours’ financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro for the full research report. The information for this article is based on a press release statement and InvestingPro data.

In other recent news, Chemours Co. reported its Q1 2025 financial results, revealing earnings per share (EPS) of $0.13, which fell short of the anticipated $0.23. Despite this earnings miss, the company achieved revenue of $1.37 billion, slightly surpassing expectations of $1.36 billion. Jefferies adjusted its price target for Chemours shares to $11.50, down from $20.00, maintaining a Hold rating, citing supply chain disruptions and lower-than-expected earnings. Meanwhile, Truist Securities lowered its price target from $22 to $20 but maintained a Buy rating, highlighting Chemours’ anticipated earnings growth in its Titanium Dioxide segment due to cost reductions expected later in the year.

Chemours also announced a strategic partnership with Navin Fluorine International Ltd. to manufacture a cooling fluid for data centers, aiming to support advanced data centers and artificial intelligence hardware. This collaboration, set to begin in 2026, focuses on the production of Opteon™, designed to significantly reduce water use and energy consumption. Despite the recent dividend cut, Chemours projects a return to positive free cash flow in the second quarter, with expectations for this trend to continue throughout the year.

Analysts from Jefferies noted that Chemours’ long-term EBITDA projection for 2025 remains between $825 million and $975 million, aligning with consensus estimates. The company is strategically focusing on the data center liquid cooling market, which could be a key growth driver. These developments reflect both the challenges Chemours faces in the current economic environment and the potential areas for growth.

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