Trane Technologies, recognized for its climate innovation, has declared a definitive agreement to acquire Stellar Energy International's Digital business. Stellar Energy is noted for providing comprehensive liquid-to-chip cooling solutions for data centers.
The acquisition reflects Trane Technologies' strategy to strengthen its market presence in thermal management solutions for data centers, addressing the increasing need for efficient, prefabricated cooling systems designed to minimize supply chain issues and enhance scalable deployment.
Stellar Energy's Contributions to Cooling Solutions
Based in Jacksonville, Florida, Stellar Energy specializes in designing and constructing modular cooling plants and utility plants for liquid-cooled data centers.
With their known expertise, particularly in modular data center solutions, the company is well-situated to meet the demand for prefabricated cooling systems in various corporate sectors. This acquisition will encompass Stellar Energy's current Digital business operations, including two assembly sites in Jacksonville, and a dedicated workforce of roughly 700 employees.
Enhancing Trane Technologies' Leadership
The acquisition enhances Trane Technologies' abilities within the expanding data center thermal management
The acquisition enhances Trane Technologies' capabilities within the expanding data center thermal management solutions sector. According to Karin De Bondt, Chief Strategy Officer at Trane Technologies, "The data center ecosystem is evolving towards more agile, sustainable solutions, and Stellar Energy excels in offering leading co-engineered, modular solutions."
She expressed enthusiasm about integrating Stellar Energy's team to expand offerings and create lasting value for customers and shareholders.
Integration into Trane Technologies' Operations
Once finalized, the Stellar Energy Digital business will become part of the Commercial HVAC business unit under Trane Technologies' Americas division.
The business will retain its existing brand, direct sales approach, and current customer base. Holly Paeper, President of Commercial HVAC Americas, highlighted the service to the rapidly growing data center market and emphasized ongoing delivery of innovative thermal management solutions aligned with customer growth and sustainability goals.
Future Prospects for Stellar Energy
Gibson stated, reflecting on the successful partnership with Trane Technologies over the years
Peter Gibson, Executive Chairman of Stellar Energy International, sees this acquisition as an important stage for Stellar Energy, providing opportunities for growth and expanded services.
"Transitioning the Digital business to Trane Technologies positions the business for significant growth while benefiting existing customers with expanded services," Gibson stated, reflecting on the successful partnership with Trane Technologies over the years.
Transaction Details
Following Trane Technologies' strategy of integrating advanced technologies, this acquisition is anticipated to deliver sustained returns. It is expected to conclude in early 2026, pending regulatory approval and fulfillment of closing conditions.
The financial terms of the transaction remain undisclosed, with Morgan Stanley & Co. LLC acting as the financial advisor to Trane Technologies.
Trane Technologies, a climate innovator, announced that it has entered into a definitive agreement with Stellar Energy International, Ltd. to acquire the Stellar Energy Digital business (“Stellar Energy”), a leading provider of turnkey liquid-to-chip data center cooling solutions.
Headquartered in Jacksonville, Florida, Stellar Energy designs and builds modular cooling plants, central utility plants and coolant distribution units for liquid-cooled data centers and other complex corporate enterprises. Stellar Energy’s expertise in modular data center solutions is well-positioned to address the growing demand for pre-fabricated cooling systems and other critical equipment, which reduce supply chain constraints and enable rapid, scalable deployment.
Trane Technologies’ leadership and capabilities
The acquisition will include Stellar Energy’s existing Digital business operations, including two assembly operations in Jacksonville, Florida, and its highly skilled team of approximately 700 employees.
The acquisition further bolsters Trane Technologies’ leadership and capabilities in the high-growth data center thermal management solutions market and creates opportunities to grow and scale the Stellar Energy business and leverage their expertise in modular design, engineering and assembly across numerous core commercial verticals.
Stellar Energy’s Digital business
“The data center ecosystem is growing rapidly and evolving toward more agile, sustainable solutions, which is where Stellar Energy excels with leading co-engineered, modular solutions and a proven business model,” said Karin De Bondt, Chief Strategy Officer, Trane Technologies.
“We are delighted to welcome the talented Stellar Energy Digital team as we jointly expand our leadership and commitment to this critical sector and other commercial applications. Together we are well-positioned to expand our capabilities and offerings and create long-term customer and shareholder value.”
Upon completion, Stellar Energy’s Digital business will operate within the Commercial HVAC business unit of the Trane Technologies Americas segment, retaining its brand, OEM-agnostic direct-to-customer sales model, and existing customer relationships.
Thermal management solutions
“We look forward to welcoming the Stellar Energy Digital team as we serve the critical and fast-growing data center market as a trusted, long-term partner for holistic and sustainable thermal management solutions,” said Holly Paeper, President, Commercial HVAC Americas, Trane Technologies.
“Together we will continue to deliver innovative, industry-leading thermal management solutions and services that help our respective customers achieve their growth, efficiency, and sustainability objectives.”
Transitioning to the Digital business
“This marks an exciting next chapter for Stellar Energy and our talented teams,” said Peter Gibson, Executive Chairman, Stellar Energy International, Ltd.
“Transitioning the Digital business to Trane Technologies positions the business for significant growth and continued excellence, while our existing customers will benefit from expanded services and resources. We’ve worked closely and successfully with Trane Technologies for many years, and I am confident Stellar Energy’s powerful combination of bespoke solutions and scalable expertise will thrive within Trane Technologies.”
Trane Technologies’ proven model
This bolt-on acquisition follows Trane Technologies’ proven model of adding leading technologies that augment its core business and scaling them to deliver strong returns over time.
The transaction is expected to be completed in early 2026, subject to closing conditions and regulatory approval. Financial terms were not disclosed. Morgan Stanley & Co. LLC served as the financial advisor to Trane Technologies on the transaction.
