CVC DIF, Tabreed Acquire UAE’s PAL Cooling for $1 Billion

The UAE's district cooling company Tabreed has partnered with Netherlands-based private equity firm CVC DIF to acquire Abu Dhabi's PAL Cooling Holding for AED 3.8 billion ($1.03 billion). PAL Cooling operates eight long-term concession agreements across Abu Dhabi's main island and Al Reem Island, servicing major developers including Aldar Properties, Modon, and Imkan, with five existing cooling plants and additional plants under construction or planned. This acquisition aligns with Tabreed's strategy to support Abu Dhabi's ambitious real estate projects and meet rising demand for sustainable cooling driven by population growth and decarbonisation goals. Tabreed, known for providing cooling to landmarks such as Burj Khalifa and Sheikh Zayed Grand Mosque, seeks to expand its presence in Abu Dhabi through this deal, which is subject to regulatory approval. The partnership highlights growing international investment interest in the Gulf region’s infrastructure as district cooling is viewed as an energy-efficient alternative to traditional air conditioning. Together, the combined assets are expected to represent around 600,000 refrigeration tons of cooling capacity, supporting the UAE's shift toward sustainable urban development.