Data center News
Eaton Buys Stake In Power Company To Boost Renewable Energy, Asia-Pacific Reach
As Eaton looks to grow its renewable energy and data center capabilities, the power giant has acquired a 49 percent stake in Jiangsu Ryan Electrical.
As Eaton looks to double down on sustainability, the data center power management company has acquired a 49-percent stake in Chinese manufacturer Jiangsu Ryan Electrical to boost its renewable energy power portfolio and reach in the Asia-Pacific region.
Jiangsu generated $100 million in revenue last year with products used by customers for data center infrastructure, renewable energy and industrial markets.
“The powerful combination of Ryan’s high-quality products and Eaton’s global distribution will enable us to better serve customers in Asia Pacific and around the world,” said Howard Liu, president of the Asia-Pacific Region and Electrical Sector at Eaton in a statement. “Together, we’ll be well-positioned to provide the solutions for the transition to more renewable energy and electrical content in a variety of applications.”
[Related: Gartner: Top 5 Markets In $4.6 Trillion Tech Industry For 2023, 2024]
The $20 billion Dublin-based power giant didn’t disclose financial numbers on the deal.
Jiangsu Ryan Electrical is based in Jiangsu, China, with a focus on renewable energy. Eaton has been doubling down on sustainability and renewable energy in recent years.
In fact, Eaton this month unveiled it has joined the White House and Department of Health and Human Services Climate Pledge. The company committed to achieving carbon-neutral operations by 2030.
Eaton Acquisitions: Royal Power Solutions, Tripp Lite
Eaton is an intelligent power management and data center infrastructure company with a slew of products including UPSes [Uninterruptible Power Systems] and PDUes [Power Distribution Units] hardware as well as power management and monitoring software.
In a purchase similar to Jiangsu Ryan Electrical, Eaton last year acquired Royal Power Solutions for $600 million to boost its energy and power management capabilities. Carol Stream, Ill.-based Royal Power Solutions manufactured electrical connectivity components used in industrial, mobility, electric vehicle and energy management markets.
Eaton made one of its largest acquisitions in its history in 2021 with the $1.65 billion blockbuster purchase of fellow power and data center infrastructure Tripp Lite.
Chicago-based Tripp Lite was a leading supplier of power and data center infrastructure offerings with a portfolio that includes more than 5,000 products ranging from UPSes and fiber network cables to rack power distribution units and enclosures.
According to IT research firm Gartner, the data center systems market is expected to reach $224 billion in 2023, an increase of 4 percent year over year.
In 2022, Eaton generated total sales of $20.8 billion, up 6 percent year over year, by serving customers in over 170 counties. Sales for its most recent fourth quarter 2022 were $5.4 billion, an increase of 12 percent year over year.
The company is expected to unveil first quarter 2023 financial results next week on May 2.