Omen AI Acquires Aquatic Labs for $16 Million to Boost Real‑Time Water Monitoring in Data Centers

Why Water Use in AI Data Centers Matters

U.S. data centers consume between 17 and 19 billion gallons of water each year to cool high‑performance chips, and the Water Foundation projects that usage could triple within five years. The high water demand creates both cost pressures and political challenges for investors financing AI expansion.

Omen AI’s Mission

Founded in 2024, Omen AI set out to reduce water waste by improving how cooling fluids are monitored. The company is developing a real‑time sensor that can detect valve failures and bacterial growth that might restrict water flow. After raising $31 million in a Series A round in June, Omen is moving forward with an acquisition.

The $16 Million Aquatic Labs Deal

Omen AI announced a $16 million cash‑and‑stock acquisition of competitor Aquatic Labs. The deal was facilitated after Omen founder Zach Laberge was introduced to Aquatic Labs CEO Allan Adams by an investor in the filtration sector.

Both companies were building real‑time water sensors, but with complementary focuses: Omen’s sensors analyze elements in the water, while Aquatic Labs’ sensor measures alkalinity. According to Adams, merging the two technologies will provide a “much richer picture of the water and the fluid.”

Founders’ Backgrounds

Zach Laberge left high school to launch a company that performed fluid analysis for large construction machines that rely on hydraulics.

Allan Adams is a former MIT professor and Woods Hole Oceanographic Institute researcher who specialized in advanced ocean‑sensing technology before starting Aquatic Labs.

Following the acquisition, Adams will serve as the company’s chief science officer, working with Omen’s team to integrate the two sensor platforms.

Timeline and Market Targets

The combined sensor is expected to reach the market by early next year. Omen plans to initially deploy its sensors on chips drawing 250–300 MW of power by the end of the year, a segment valued at roughly $5–$7 billion. The company aims to monitor the equivalent of 1 GW of chips by the end of 2027.

Value of Real‑Time Monitoring

When cooling fluid systems malfunction, data‑center operators often choose to discard the water to protect expensive equipment, leading to costly shutdowns. Continuous monitoring allows operators to keep the same fluid in service longer, reducing both downtime and cleanup expenses.

Adams noted that the technology could also benefit water handling beyond data centers, emphasizing the need for responsible measurement as water exits facilities and enters municipal systems.

Industry Context

Analysts once projected that AI infrastructure spending could reach $4 trillion by 2030. Recent market volatility has softened investor enthusiasm, causing hyperscaler stocks to fall. Despite this, Laberge says Omen’s business is insulated because it supports facilities that were financed 12 months ago. He added that even if AI spending were halved, it would remain “the biggest market in human history.”