DUG Technology Ltd (ASX: $DUG) announcement overview

DUG Technology Ltd (ASX: $DUG) has announced the signing of an exclusive DUG Cool licensing agreement with Baltimore Aircoil Company, Inc (BAC). The agreement grants BAC worldwide rights to use DUG's patent rights and know-how regarding DUG Cool, the Company's immersion-cooling technology. This partnership is set to revolutionize the data centre cooling market.

Executive commentary on the agreement

This new partnership between BAC and DUG is poised to revolutionize the data centre cooling market. Our patented DUG Cool design has been refined through production use for over a decade. Our Skybox data centre in Houston is among the largest single-phase immersion cooling deployments in the world. This agreement will pair our design, know-how, and reputation with BAC's scale, manufacturing prowess, and respected brand to position us to take advantage of a shifting and rapidly expanding data centre cooling market. We very much look forward to working with BAC as part of this agreement.

Summary of the exclusive licensing agreement and outlook

DUG Technology Ltd (ASX: $DUG) has signed an exclusive licensing agreement with BAC, granting BAC worldwide rights to use DUG's immersion-cooling technology. The agreement is expected to revolutionize the data centre cooling market, providing data centre customers with more advanced options to meet their current and future cooling needs. DUG will earn royalties until the patent expiry date in 2036, and will retain the ability to utilize the licensed IP for its own use and for use in the Company's DUG Nomad product suite. The partnership represents a significant milestone for both companies, positioning them to lead the way in addressing the challenges of high-density computing and providing sustainable, next-generation cooling solutions for data centers.