Johnson Controls has signed an agreement to acquire Boston-based Alloy Enterprises, a company specialising in next-generation thermal management technology for high-performance data centres and other mission-critical industrial applications. The transaction is expected to complete in the company’s fiscal third quarter, subject to customary closing conditions and regulatory approvals.
The acquisition is positioned as part of Johnson Controls’ strategy to expand its presence in the data centre cooling market, which continues to grow alongside rising demand for compute capacity and AI infrastructure. By integrating Alloy’s technology, the company aims to enhance its capabilities in advanced thermal management.
Founded in 2020, Alloy Enterprises develops thermal, mechanical and materials science technologies centred on a proprietary platform for direct liquid cooling. According to Johnson Controls, the platform’s advanced components can enable up to a 35% improvement in thermal management efficiency and reduce pressure drop by up to 75%, allowing fluid to flow more easily through cooling systems.
This improved flow and heat removal performance can lower overall cooling system energy use, a key consideration for data centres seeking to manage operational costs and energy demand. Direct liquid cooling has gained traction as data centre operators respond to higher rack densities and heat loads driven by AI and high-performance computing workloads.
Lei Schlitz, vice president and president, Global Products & Solutions at Johnson Controls, said: “This acquisition is about enabling our customers to stay ahead of fast-changing compute demands by adding another core technology that enables us to optimize the overall thermal management architecture of a data centre. It will also strengthen our core technology capabilities that can scale across the Johnson Controls portfolio and reinforces our long-term commitment to lead more broadly in advanced thermal management solutions for mission critical applications.”
“With the addition of Alloy Enterprises, we are poised to set new standards in cooling efficiency and capacity and help customers accelerate time to market with the right integrated technologies. We look forward to welcoming the talented Alloy colleagues to the Johnson Controls team.”
Johnson Controls stated that Alloy’s proprietary manufacturing process advances liquid cooling efficiency for GPUs, CPUs, memory and network interfaces. These capabilities will complement the company’s existing portfolio of cooling technologies, which includes magnetic bearing chillers, centrifugal chillers, coolant distribution units and absorption chillers designed to recover waste heat.
Among its recent product developments are the YDAM magnetic bearing chiller, delivering 3.5 MW of cooling and increased capacity density compared with competing solutions, and the YK-HT two-stage economized centrifugal chiller, which the company states is smaller than alternative systems and requires fewer dry coolers. The portfolio also includes the Silent-Aire Coolant Distribution Unit platform, offering liquid cooling capacities from 500 kW to over 10 MW.
Alison Forsyth, co-founder and CEO of Alloy Enterprises, said: “We’re excited to join Johnson Controls and accelerate the impact of our unique technology. We’ll continue to work closely to solve the industry’s most urgent challenges in data centers and other mission-critical environments. We look forward to this new chapter and continuing to scale with one of the world’s most respected and experienced leaders in thermal management innovation.”
Financial terms of the transaction were not disclosed. Johnson Controls noted that forward-looking statements related to the acquisition are subject to risks and uncertainties, including the ability to realise anticipated benefits and successfully integrate Alloy Enterprises into its operations.
The agreement signals continued consolidation and investment in data centre cooling technologies, as infrastructure providers seek more energy-efficient solutions to support expanding digital and AI-driven workloads.
