ClearBridge ESG Investment on Johnson Controls International
Thesis
Johnson Controls offers exposure to the increasing importance of efficient thermal management in AI data centers. Its technologies include cold plates, coolant distribution units, chillers and air-cooled systems. By controlling several major cooling subsystems, Johnson Controls can optimize overall cooling architecture as computing density rises. Its technologies can reduce energy consumption, water requirements, noise and refrigerant-related environmental impacts. ClearBridge believes these improvements can lower operating costs while improving acceptance of data-center projects.
“Reducing the power, water and noise associated with cooling can lower operating costs while making projects more acceptable to utilities, regulators and neighboring communities.”
Key risks
- Increasing computing density raises cooling performance requirements.
- Community concerns surrounding water use and noise could restrict projects.
- Power constraints and equipment shortages could delay construction.
- Insufficient efficiency improvements could weaken project economics.