Data center expansion is creating a heat-mitigation problem, and industrial technology firms are moving rapidly to provide a solution. Johnson Controls (NYSE: JCI) is positioning itself at the center of this shift. Following a strong fiscal fourth-quarter earnings beat, the company is shifting funds from its slower-growing businesses towards more profitable thermal management.
The recent agreement to divest its global intrusion products business to private equity firm Truelink Capital signals a definitive pivot in strategy. Management is moving away from slower-growing security products to focus on essential data center infrastructure.
