Robust growth in the data center sector is creating new merger and acquisition (M&A) opportunities in HVAC equipment, cooling, and power management, according to a new industry report from the Engineered Equipment investment banking team at Brown Gibbons Lang & Company (BGL).
The report notes that rising energy efficiency requirements and instrumentation demands are accelerating market activity. “Participants in the environmental controls and power management sectors that serve the data center market are experiencing a period of unprecedented growth,” said Justin Wolfort, Director at BGL. “We’ve observed a significant rise in investor interest in both mature and emerging technologies utilized in the space.”
Exponential growth in data center construction, driven by artificial intelligence (AI) and other emerging technologies, is intensifying the need for advanced heat displacement solutions. This is increasing demand for engineered HVAC equipment capable of reducing energy consumption while supporting higher power densities.
Key areas of interest outlined in the report include energy-efficient technologies, regulatory compliance, and instrumentation for uptime assurance. The report highlights strategic and financial investor activity, with a focus on cooling technologies that enable sustainable power usage. Recent transactions involving liquid cooling companies, including Motivair (Schneider Electric) and TMGcore (Modine Manufacturing), reflect ongoing consolidation in the sector.
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