PALM BEACH GARDENS, Fla. - Carrier Global Corporation (NYSE: NYSE:CARR), a provider of climate and energy solutions, has announced its investment in Strategic Thermal Labs (STL), focusing on a new liquid cooling technology for data centers. The collaboration aims to address the growing demand for efficient cooling methods due to the rise of high-density computing powered by AI and other advanced technologies.
Direct-to-chip liquid cooling, as highlighted by Ajay Agrawal, Senior Vice President at Carrier, is expected to be a key component in the future of data centers, offering a more efficient alternative to traditional cooling systems. This technology is crucial for reducing energy consumption while scaling to meet customer needs. Carrier's investment grants them a board seat in STL and exclusivity for this innovative solution.
STL, based near Austin, Texas, is recognized for its expertise in liquid cooling technology, which is becoming increasingly important as data centers face surging power consumption and inefficiency in cooling technology. Austin Shelnutt, President of STL, emphasized the synergy between Carrier's legacy of energy-efficient solutions and STL's specialization in data center cooling.
This move follows Carrier's 2021 acquisition of Nlyte, a leading data center infrastructure management provider. Nlyte's DCIM tools enhance the transparency and control over data center infrastructures, contributing to better uptime.
Carrier Ventures, the venture arm of Carrier Global Corporation, invests in sustainable and disruptive technologies, supporting Carrier's 2030 Environmental, Social & Governance (ESG) Goals. The company aims to assist customers in avoiding over 1 gigaton of greenhouse gas emissions by 2030 and has committed to investing over $2 billion in intelligent climate and energy solutions.
This partnership is based on a press release statement.
InvestingPro Insights
Carrier Global Corporation's (NYSE: CARR) investment in Strategic Thermal Labs underscores its commitment to innovation and sustainability in the face of a rapidly evolving data center industry. With a market capitalization of 48.83 billion USD and a forward-looking stance, Carrier is steering towards meeting the demands of next-generation cooling solutions. The company's recent activities are a testament to its position as a prominent player in the Building Products industry.
InvestingPro data highlights Carrier's financial metrics, with a Price/Earnings (P/E) ratio of 33.76, reflecting a premium valuation compared to the industry average. This high earnings multiple suggests that investors have high expectations for the company's future growth. Moreover, Carrier has maintained a steady revenue growth rate, with the last twelve months as of Q4 2023 seeing an 8.21% increase to 22.1 billion USD. This growth is indicative of the company's ability to expand its operations and adapt to market demands.
With a commitment to shareholder returns, Carrier has raised its dividend for four consecutive years, showcasing the company's financial stability and confidence in its business model. As an InvestingPro Tip, it's noteworthy that Carrier operates with a moderate level of debt, which provides it with the financial flexibility to pursue strategic investments like the one in STL. Additionally, Carrier's liquid assets exceed its short-term obligations, ensuring the company can meet its immediate financial needs without strain.
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