Johnson Controls to Acquire Data Center Cooling Firm
What happened
Johnson Controls has signed an agreement to acquire Alloy Enterprises, a company specializing in thermal management. The acquisition aims to strengthen Johnson Controls' leadership position in the data center cooling sector. The move is a strategic response to the booming power and cooling demands driven by the artificial intelligence industry.
Why it matters
- The global data center cooling market was valued at approximately USD 18.78 billion in 2025 and is projected to grow to USD 54.18 billion by 2034. The liquid cooling sub-market, where Alloy Enterprises specializes, was valued at USD 4.8 billion in 2025 and is expected to reach USD 27.1 billion by 2035. - Alloy Enterprises, founded in 2020, utilizes a proprietary manufacturing process called Stack Forging™ to create single-piece, leak-tight direct liquid cooling (DLC) components with embedded micro-geometries for improved heat transfer. - The company's technology can improve thermal management efficiency by up to 35% and reduce pressure drop by as much as 75%, which significantly lowers the energy required for pumping fluids. - This deal is part of Johnson Controls' broader strategy to become a pure-play provider of solutions for commercial buildings, which was accelerated by the sale of its residential and light commercial HVAC business to Bosch in 2025. - Johnson Controls has been actively expanding its data center offerings, including the 2021 acquisition of Silent-Aire, a leader in hyperscale data center cooling, and the 2025 launch of its Silent-Aire Coolant Distribution Unit (CDU) platform. - Alloy Enterprises' CEO and co-founder is Ali Forsyth, PhD. The financial terms of the acquisition were not disclosed, and the transaction is expected to close in the third fiscal quarter of 2026. - The acquisition will enhance Johnson Controls' existing portfolio, which includes the YDAM magnetic bearing chiller and the YK-HT two-stage centrifugal chiller, by adding advanced direct-to-chip cooling capabilities.
Key numbers
- - The global data center cooling market was valued at approximately USD 18.78 billion in 2025 and is projected to grow to USD 54.18 billion by 2034.
- The liquid cooling sub-market, where Alloy Enterprises specializes, was valued at USD 4.8 billion in 2025 and is expected to reach USD 27.1 billion by 2035.
- Alloy Enterprises, founded in 2020, utilizes a proprietary manufacturing process called Stack Forging™ to create single-piece, leak-tight direct liquid cooling (DLC) components with embedded micro-geometries for improved heat transfer.
- The company's technology can improve thermal management efficiency by up to 35% and reduce pressure drop by as much as 75%, which significantly lowers the energy required for pumping fluids.
What happens next
- The liquid cooling sub-market, where Alloy Enterprises specializes, was valued at USD 4.8 billion in 2025 and is expected to reach USD 27.1 billion by 2035.
- Johnson Controls has been actively expanding its data center offerings, including the 2021 acquisition of Silent-Aire, a leader in hyperscale data center cooling, and the 2025 launch of its Silent-Aire Coolant Distribution Unit (CDU) platform.
- The financial terms of the acquisition were not disclosed, and the transaction is expected to close in the third fiscal quarter of 2026.
Quick answers
What happened in Johnson Controls to Acquire Data Center Cooling Firm?
Johnson Controls has signed an agreement to acquire Alloy Enterprises, a company specializing in thermal management. The acquisition aims to strengthen Johnson Controls' leadership position in the data center cooling sector. The move is a strategic response to the booming power and cooling demands driven by the artificial intelligence industry.
Why does Johnson Controls to Acquire Data Center Cooling Firm matter?
The global data center cooling market was valued at approximately USD 18.78 billion in 2025 and is projected to grow to USD 54.18 billion by 2034. The liquid cooling sub-market, where Alloy Enterprises specializes, was valued at USD 4.8 billion in 2025 and is expected to reach USD 27.1 billion by 2035. Alloy Enterprises, founded in 2020, utilizes a proprietary manufacturing process called Stack Forging™ to create single-piece, leak-tight direct liquid cooling (DLC) components with embedded micro-geometries for improved heat transfer. The company's technology can improve thermal management efficiency by up to 35% and reduce pressure drop by as much as 75%, which significantly lowers the energy required for pumping fluids. This deal is part of Johnson Controls' broader strategy to become a pure-play provider of solutions for commercial buildings, which was accelerated by the sale of its residential and light commercial HVAC business to Bosch in 2025. Johnson Controls has been actively expanding its data center offerings, including the 2021 acquisition of Silent-Aire, a leader in hyperscale data center cooling, and the 2025 launch of its Silent-Aire Coolant Distribution Unit (CDU) platform. Alloy Enterprises' CEO and co-founder is Ali Forsyth, PhD. The financial terms of the acquisition were not disclosed, and the transaction is expected to close in the third fiscal quarter of 2026. The acquisition will enhance Johnson Controls' existing portfolio, which includes the YDAM magnetic bearing chiller and the YK-HT two-stage centrifugal chiller, by adding advanced direct-to-chip cooling capabilities.
