Omen AI, a startup focused on optimizing water use in data centers, has acquired competitor Aquatic Labs in a $16 million cash-and-stock deal. Both companies develop real-time sensors that monitor cooling fluids, a key challenge as U.S. data centers currently consume 17 to 19 billion gallons of water annually to cool chips, a figure expected to triple within five years. Omen AI’s technology detects chemical elements in the water, while Aquatic Labs’ sensor measures alkalinity; combining these approaches allows for a more comprehensive analysis of the fluid systems critical to data center cooling.

The acquisition unites the distinct backgrounds of the two founders: Omen AI’s Zach Laberge, who previously built fluid analysis systems for heavy machinery, and Aquatic Labs’ Allan Adams, an MIT-trained physicist with experience in advanced ocean sensing. Adams now takes the role of chief science officer at Omen AI, where the combined team aims to integrate both sensor technologies into a single product expected to launch by early 2027. This tool promises to enable data center operators to extend the lifespan of their cooling fluids, reduce costly downtime, and improve environmental safety by monitoring discharged water.

Omen AI’s current sensors are already deployed in chip operations totaling up to 300 megawatts of power, with ambitions to monitor up to 1 gigawatt by the end of next year, representing a market valued between $5 billion and $7 billion. This addresses a critical pain point: traditional fluid testing is slow and manual, often requiring water samples to be sent off to labs with multi-day delays. The enhanced real-time capability provided by the merged sensor technology helps avoid premature fluid dumping and costly operational shutdowns, which are major risks given the scale and expense of AI infrastructure investments.

Despite recent skepticism among investors about AI infrastructure spending, Omen AI remains optimistic due to its focus on post-construction operational efficiency rather than new builds. Zach Laberge emphasized that many data centers they work with were financed well before current market uncertainties. As data center water use climbs, the acquisition positions Omen AI to expand its footprint in an essential and growing market, with potential environmental impact beyond data centers in responsible water management and safety.