Hi Brian most ESC’s today are claimed to be waterproof, but if cooling is required, a fair flow of water through the heat exchanger will be required, therefore, I would put a scoop down through the hull, and an exhaust on the transom so that a through flow is not impeded in any way. some correspondents claim that their ESC’s run hot, and that will not help. I guess that to be kind, you don’t make the ESC do too much work by fitting too high voltage battery, and remember the maker fitted it with water cooling for a reason, so my thoughts are that if you do cool it, it will notsustain heat damage and reward you with many years faithful service……………………………………………Mike Davidson…………..