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.
- 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.
