JOHNSON CONTROLS FORMS DATA CENTER SOLUTIONS ORGANIZATION TO MEET GROWING DEMAND

Rhea-AI Summary

Johnson Controls (NYSE: JCI) announced the formation of a dedicated Global Data Center Solutions organization to meet growing demand. Led by company veteran Todd Grabowski, the new division aims to leverage Johnson Controls' extensive resources to deliver integrated data center solutions globally. Grabowski will report to Chairman and CEO George Oliver. This move is part of Johnson Controls' strategy to capitalize on the booming data center market through innovative technologies, extensive R&D, and a comprehensive service portfolio. The company aims to provide energy-efficient, sustainable, and safe solutions to data center customers, enhancing efficiency and reducing costs.

Positive

• Johnson Controls is capitalizing on the booming data center market, a rapidly growing sector.
• The new Global Data Center Solutions organization aims to deliver integrated solutions, potentially increasing market share.
• The division will be led by Todd Grabowski, a veteran with over 30 years of experience, ensuring strong leadership.
• Investment in R&D and world-class test laboratories indicates a commitment to ongoing innovation.
• Focus on energy-efficient and sustainable solutions aligns with global trends, enhancing market appeal.
• Johnson Controls' extensive global footprint allows for scalable deployment of solutions, meeting diverse customer needs.

Negative

• The formation of the new division may lead to increased operational costs in the short term.
• Market competition in the data center sector is intense, posing potential challenges for Johnson Controls.
• R&D investments, while essential, are costly and may impact short-term profitability.
• The success of the new organization is contingent on customer adoption and market conditions, which are variable.

• Company veteran Todd Grabowski appointed to lead new global organization focused on delivering integrated data center solutions
• Grabowski to report directly to Chairman and CEO George Oliver

CORK, Ireland, June 5, 2024 /PRNewswire/ -- Johnson Controls (NYSE: JCI), the global leader for smart, healthy and sustainable buildings, today announced the creation of a dedicated Global Data Center Solutions organization, focused specifically on operationalizing Johnson Controls' global scale to provide integrated solutions to data center customers around the world in support of the company's business segments. Todd Grabowski, president, Global Data Center Solutions, will lead the Global Data Center Solutions organization, reporting directly to Chairman and CEO George Oliver.

"Over the last few years, we have been investing and building momentum in the data center market to establish Johnson Controls' leading position. It is clear our offering is resonating with customers, and we are now taking further steps to capture the growth opportunity ahead of us," said Oliver. "Todd and his team will prioritize offering our full suite of smart building technologies—coupling our unique set of energy-efficient, sustainable, and safe data center solutions with unmatched service—to meet increasing demand and drive Johnson Controls' continued growth and value creation."

Johnson Controls' products and solutions are already widely used in the most demanding data centers in the world. The company has a unique portfolio of integrated solutions that help minimize costs, maximize efficiency, and optimize timing for data center owners. JCI is well-positioned to capitalize on rapidly increasing demand in the emerging data center market due to its relentless innovation efforts and inherent strategic advantages, including:

• Creating leading technologies around a broad range of air-cooled and water-cooled chillers to support the continued growth in cooling demand;
• Investing in R&D and world-class test laboratories to design, build, test and demonstrate performance of equipment and accelerate the pace of innovation; and
• Building leading domain expertise to provide complete package solutions that drive outcomes while providing service for the entire life cycle of the asset.

"Solving customer problems today and in the future is what we do best at Johnson Controls. We have optimized our investments and solutions to ensure we are uniquely qualified to provide the differentiated outcomes data center customers need and expect from an industry leader like Johnson Controls," said Grabowski. "Our global footprint allows us to scale and deploy these solutions wherever they are needed and earn long-term connection with those customers through our unparalleled service offerings."

Grabowski has more than 30 years of experience at Johnson Controls, most recently as vice president and general manager, HVACR. He will continue to lead that portfolio in his expanded role. He holds a Bachelor of Science degree in Electrical Engineering from Michigan State University.

To learn more about Johnson Controls Data Center Solutions, visit: https://www.johnsoncontrols.com/industries/data-centers

INVESTOR CONTACT:	MEDIA CONTACT:
Jim Lucas	Trent Perrotto
Direct: +1 651.391.3182	Direct: +1 414.524.8687
Email: jim.lucas@jci.com	Email: media@jci.com

About Johnson Controls:

At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet.

Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.

Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.

Visit www.johnsoncontrols.com for more information and follow @Johnson Controls on social platforms.

Johnson Controls International plc Cautionary Statement Regarding Forward-Looking Statements:

Johnson Controls has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. Forward-looking statements may be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning in connection with a discussion of future operating or financial performance. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Johnson Controls control, that could cause Johnson Controls actual results to differ materially from those expressed or implied by such forward- looking statements, including, among others, risks related to: Johnson Controls ability to develop or acquire new products and technologies that achieve market acceptance and meet applicable quality and regulatory requirements; Johnson Controls ability to manage general economic, business and capital market conditions, including the impact of recessions, economic downturns and global price inflation; fluctuations in the cost and availability of public and private financing for Johnson Controls customers; Johnson Controls ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; Johnson Controls ability to manage macroeconomic and geopolitical volatility, including shortages impacting the availability of raw materials and component products and the conflicts between Russia and Ukraine and Israel and Hamas; managing the risks and impacts of potential and actual security breaches, cyberattacks, privacy breaches or data breaches, including business, service, or operational disruptions, the unauthorized access to or disclosure of data, financial loss, reputational damage, increased response and remediation costs, legal, and regulatory proceedings or other unfavorable outcomes; Johnson Controls ability to remediate its material weakness; maintaining and improving the capacity, reliability and security of Johnson Controls enterprise information technology infrastructure; Johnson Controls ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of Johnson Controls digital platforms and services; changes to laws or policies governing foreign trade, including economic sanctions, tariffs, foreign exchange and capital controls, import/export controls or other trade restrictions; fluctuations in currency exchange rates; changes or uncertainty in laws, regulations, rates, policies, or interpretations that impact Johnson Controls business operations or tax status; the ability to adapt to global climate change, climate change regulation and successfully meet Johnson Controls public sustainability commitments; risks and uncertainties related to the settlement with a nationwide class of public water systems concerning the use of aqueous film forming foam; the outcome of litigation and governmental proceedings; the risk of infringement or expiration of intellectual property rights; Johnson Controls ability to manage disruptions caused by catastrophic or geopolitical events, such as natural disasters, armed conflict, political change, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; the ability of Johnson Controls y to drive organizational improvement; any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions; the ability to hire and retain senior management and other key personnel; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements. Investors are therefore cautioned not to place undue reliance on any forward looking statements. For further discussion of certain of these factors, see Item 1A. Risk Factors in Johnson Controls Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the U.S. Securities and Exchange Commission (the "SEC") on December 14, 2023 and in Johnson Controls subsequent and future filings with the SEC, which are available at www.sec.gov. Investors should understand that it is not possible to predict or identify all such factors and should not consider this list to be a complete statement of all potential risks and uncertainties. The forward-looking statements included in this communication are made only as of the date of the document in which they are included, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update forward-looking statements to reflect events or circumstances occurring after the date of such document.

 

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SOURCE Johnson Controls International plc

FAQ

What is Johnson Controls' new initiative in the data center market?

Johnson Controls has formed a dedicated Global Data Center Solutions organization to meet the growing demand for integrated data center solutions.

Who is leading Johnson Controls' Global Data Center Solutions organization?

Todd Grabowski, a company veteran with over 30 years of experience, is leading the new organization.

What is the focus of Johnson Controls' new data center division?

The division focuses on delivering integrated, energy-efficient, sustainable, and safe data center solutions globally.

How does Johnson Controls plan to drive innovation in the data center market?

Johnson Controls plans to drive innovation through extensive R&D investments and world-class test laboratories.

What are the potential benefits for investors with the new data center solutions organization?

The organization aims to capitalize on the rapidly growing data center market, potentially increasing Johnson Controls' market share and driving long-term growth.