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Goldman Sachs Invests In Data Center Energy Management Integrator Divcon Controls

February 22, 2024 by Joe Panettieri

Goldman Sachs Alternatives has invested in Divcon Controls -- a systems integrator that helps data centers to monitor, manage, optimize and reduce their energy consumption. The investment will recapitalize Divcon. Financial terms of the deal were not disclosed.

The Goldman Sachs-Divcon investment comes at a key time. The big picture: As AI (artificial intelligence) application workloads expand, data center energy consumption is expected to skyrocket.

As a result, data center companies, facilities managers and channel partners are seeking new ways to optimize energy consumption while also plugging into renewable energy sources. Divcon appears well-positioned to capitalize on those customer needs and trends.

Related: See all M&A deals involving sustainability, climate tech and green IT services listed here.

Goldman Sachs Invests In Divcon: Business Backgrounds

Jeff Possick
Jeff Possick, managing director, Goldman Sachs Alternatives

Goldman Sachs Alternative Investments focuses on private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. It has roughly 1,000 investment professional and $456 billion in alternative assets.

Divcon, founded in the 1990s, is based in Dallas, Texas. The company provides building management and electrical power monitoring systems to mission critical facilities, enabling the customer to control, automate & monitor energy and power functions. Divcon positions itself as one of the world's largest control systems contractors focused on colocation data centers and mission critical facilities.

Goldman Sachs Invests in Divcon: Executive Perspectives

In a prepared statement about the Divcon investment, Jeff Possick, managing director in Sustainable Investing at Goldman Sachs Alternatives, said: “We are excited to partner with Divcon’s management team to accelerate the company’s growth. Divcon is valued by its customers for its flexibility, depth of technical expertise and customer-centric approach. We are attracted by the secular tailwinds in data center construction – which have only accelerated with the adoption of AI – combined with increasing focus on reducing the energy load that data centers require to operate.”

John Palacios
John Palacios, chairman, Divcon Controls

Added John Palacios, co-founder and chairman at Divcon Controls, said: “Welcoming an investor like Goldman Sachs is game changing for us. Their extensive network and global reach should significantly enhance our capabilities and allow us to expand our services to a wider market.”

Concluded Ben Crowell, co-founder and CEO at Divcon Controls: “As a management team we believe that the resources of Goldman will not only assist us in better servicing our existing customers but will allow Divcon to reach new levels within the mission critical market. The global footprint, technical resources, and financial backing that Goldman Sachs brings to our partnership will play an instrumental role in the future success and growth of Divcon.”

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