The Stack Archive News Article

Blackstone invests in cloud-based energy analytics firm

Wed 31 May 2017

The Blackstone Group, one of the world’s leading investment groups with over $368 billion in assets under management, has purchased a stake in Entic, Inc.

Entic is a company that uses cloud-based data analytics to identify waste energy in a building’s heat, ventilation, and air conditioning systems.

Founded in 2011, Entic uses big data analytics to monitor energy waste and make real-time recommendations to increase efficiency in various building systems. Entic provides a facility with sensor to ensure accurate readings, then transports energy use data to the cloud where it runs an algorithm to identify potential areas for improvement.

The details of the investment, including the total amount invested and stake purchased, remain undisclosed. However, Carlos Diaz, co-founder and CEO of Entic, said that the investment will allow Entic to scale service offerings to the global market.

“One of the things Blackstone said to us in our early discussions was: stop thinking about tens and twenties of buildings, and start thinking of hundreds and thousands of buildings.”

Current customers of Entic include hotels, hospitals and sports venues in addition to traditional office buildings. However, with promises of energy savings in HVAC as well as water systems, Entic’s services could easily be applicable to the data center market, where energy efficiency is a high priority.

Data centers require an enormous amount of energy to run, particularly to meet requirements to keep facilities cool, with hundreds of servers generating heat as they operate. Focus on innovative techniques for managing facility systems has leveled off energy demands over the past two years, however, data centers continue to consume an estimated 3% of the world’s total energy supply, leaving a carbon footprint roughly the same as the entire airline industry. That amount could grow up to three times over the next decade, as demand for data storage continues to rise.

The Blackstone Group, as owners of the global network of DCI data centers, could make use of Entic’s services in-house, to manage energy efficiency at their own data center facilities.

The investment from Blackstone also provides Entic with the capability to expand service offerings to the global market.

Carlos Diaz noted that the new investment from Blackstone “obviously has given Entic a great boost in valuation and credibility in the market.” This investment also aligns with Blackstone’s February purchase of a majority stake in CloudReach, the UK-based cloud adoption enabler, offering services to assist companies in migrating services to the cloud.

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analytics Cloud data data centre green news U.S.
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