Johnson Controls Invests in Accelsius to Advance Data Center Cooling

Johnson Controls International plc JCI recently announced a multi-million-dollar investment in Accelsius to advance innovative cooling technologies for data centers.

Based in Austin, TX, Accelsius was established by Innventure, Inc. INV. Accelsius is engaged in providing two-phase, direct-to-chip liquid cooling technology to data centers. Its patented NeuCool platform delivers energy-efficient cooling for anything from a single rack to a full data center.

Inside the Headlines

The rising demand for Artificial Intelligence (AI) has increased the need for effective cooling solutions in high-capacity data centers. As cooling systems can account for up to 40% of a data center’s total energy consumption, there is a growing requirement for smarter, energy and water-efficient solutions.

Accelsius’ state-of-the-art cooling technology uses non-conductive fluids in a liquid-to-vapor phase-change process to remove heat more efficiently. This technology can lower operating expenses by 35% compared with single-phase direct-to-chip cooling technology. As a result, data centers can operate more efficiently with lower energy costs and improved overall performance.

Other Developments

Johnson Controls has developed several advanced solutions for data centers. One example is the YORK YVAM magnetic bearing chiller, which uses 40% less power yearly than other available options and requires no on-site water. Also, the company recently unveiled its Silent-Aire Coolant Distribution Unit (CDU) platform. It provides customizable cooling capacities ranging from 500 kilowatt to more than 10 megawatt, with flexible designs to fit any data center.

JCI’s Zacks Rank and Price Performance

Johnson Controls benefits from solid momentum in the Americas unit, aided by an increase in demand for the HVAC (heating, ventilation and air conditioning) platform and strength in controls businesses. Strength in service, fire, security and applied HVAC businesses bodes well for EMEA (Europe, the Middle East, and Africa) unit.

JCI currently carries a Zacks Rank #3 (Hold). In the past year, the company’s shares have gained 41.9% compared with the industry’s 3.3% growth.

However, higher SG&A expenses, owing to transformation and restructuring initiatives, are likely to dent its bottom line. High debt levels may raise JCI’s financial obligations.

Stocks to Consider

Some better-ranked companies are discussed below.

Crane Company CR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CR delivered a trailing four-quarter average earnings surprise of 7.5%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 0.9%.

Flowserve Corporation FLS presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.

In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has increased 0.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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