Dive Brief:
- Johnson Controls has acquired Nantum AI, a New York-based company providing AI algorithms that are intended to help businesses improve system controls, save energy and make operations more efficient, the company announced Monday.
- “We’re entering the next phase of the industrial revolution, where digital intelligence is as critical as the physical systems themselves,” Vijay Sankaran, chief digital and information officer at Johnson Controls, said in a statement. “With the addition of Nantum AI, we’re helping our customers better reduce energy use, manage complexity and run more resilient, efficient facilities.”
- The acquisition is intended to expand Johnson Controls’ OpenBlue digital ecosystem capabilities by enabling real-time airflow and using occupancy data to help adjust HVAC performance. Nantum’s capabilities are expected to be a particular benefit to higher education, healthcare and other organizations managing complex facilities, Johnson Controls says.
Dive Insight:
OpenBlue is Johnson Control’s cloud-based building management system. The company says the Nantum acquisition will help it add autonomous, AI-driven control across air- and water-side applications. Facility managers would be able to use the enhanced platform to make more informed decisions and automate processes to improve energy efficiency without sacrificing comfort and reliability, according to the company.
“Nantum AI is already delivering more than 10% energy savings for customers and we are pleased to see how our algorithms complement Johnson Controls’ existing deep building expertise,” Michael Rudin, a board member of Prescriptive Holdings LLC, which owns Nantum AI, said in a statement.
The acquisition builds on Johnson Controls’ portfolio of AI-powered building solutions. By adding this AI layer on top of the air handling units, fans and other air circulation equipment that are connected to the system, the company said, it will be able to pull in internal and external source data like weather patterns and utility bill trends.
Digital enhancements like the Nantum algorithms are part of a broader strategy for helping building operators manage rising energy costs and lower emissions, Johnson Controls CEO Joakim Weidemanis said on the company’s Feb. 4 earnings call.
“In an increasingly energy-constrained world, where energy costs continue to rise, our customers are under pressure to manage energy more effectively, reduce their carbon footprint, but also need strong operational returns,” he said.
The company grew systems orders 84% year over year in its Americas region in the three months ending in March, according to its fiscal Q1 earnings report. The sharp increase was largely due to success in the technology-intensive data center sector, where architectures continue to require greater thermal and energy management requirements, he said.
The company will release its fiscal Q2 earnings on May 6.
