Data Center Demand Heating Up M&A Opportunities Across the HVAC Equipment Landscape
The BGL Engineered Equipment Insider
CLEVELAND, June 19, 2025 /PRNewswire/ -- Robust demand and evolving technologies position data center cooling, power management, and instrumentation for significant growth, creating opportunities for consolidation across the fragmented HVAC equipment landscape, according to an industry report released by the Engineered Equipment investment banking team from Brown Gibbons Lang & Company (BGL).
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"Participants in the environmental controls and power management sectors that serve the data center market are experiencing a period of unprecedented growth, fueled by increasing energy efficiency requirements and instrumentation demands to ensure uptime," said Justin Wolfort, a Director within BGL's Engineered Equipment investment banking team. "We've observed a significant rise in investor interest in both mature and emerging technologies utilized in the space. Notable M&A activity by strategic and financial investors alike indicates a market ripe for consolidation and further investment."
Inside the report, BGL examines data center development, where exponential growth fueled by artificial intelligence (AI) and other emerging technologies is generating a significant need to displace heat. Future power requirements require greater cooling efficiency, creating the need for innovative solutions to reduce energy consumption.
Key takeaways include:
- How increased focus on energy efficiency and the evolving regulatory climate are driving demand for engineered equipment
- Why the HVAC equipment sector has seen growing interest from investors in recent years
- The notable HVAC M&A transactions that signal growing participation by strategic and financial investors in the HVAC equipment market
Advanced cooling technologies are garnering increasing investment to help accommodate the demand for more efficient and sustainable power, an area where HVAC M&A activity has been strong as componentry suppliers seek to diversify their data center offerings. Motivair (Schneider Electric) and TMGcore (Modine Manufacturing) are among several recently announced strategic transactions involving liquid cooling companies.
BGL's Engineered Equipment investment banking team has extensive experience working with companies that produce highly engineered equipment and machinery, sub-systems, and components used in a variety of end markets; this includes flow control, emission control, HVACR systems and components, clean technology, energy transition and decarbonization technology, process and automation equipment, material handling and conveyance, electronic and electrical equipment, precision-engineered tools and machine componentry, and finished production equipment.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Boston, Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago and Cleveland. The firm is also a founding member of REACH Cross-Border Mergers & Acquisitions, enabling BGL to service clients in 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com.
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SOURCE Brown Gibbons Lang & Company