Temperatures hit 114°F in India last week—an aggressive heat-spike which left people unable to work. A report by the World Meteorological Organization said that Europe faced “rapid warming” and “dangerously high air temperatures”. America experienced its hottest March in 132 years of record-keeping.
The prosaic sounding HVAC is moving center stage. Heating, ventilation and air-conditioning is not just a ‘nice to have’, it is now often a matter of life and death. In the north, keeping warm was once the priority. Now keeping cool is.
Businesses spend inordinate amounts of money keeping buildings at the right temperature and workforces happy—up to 50% of an office block’s energy consumption is spent on heating or cooling. Climate volatility means sophisticated solutions to the hot/cold conundrum are in demand.
Artificial intelligence can help, as it can with most business systems. Knowing the strength of the sun, the strike angle of sunlight on a building and the depth of cloud cover all helps to regulate heat when you need it and cooling capability when temperatures soar. It is more efficient if heating and cooling systems work together, regulating energy use minute by minute based on substantial inputs of data. Large language models are built for such tasks.
Trane Technologies, #215 on Europe’s Fortune 500 List, is an expert in such things. Its customers—and the markets—have noticed. Yesterday it raised its full-year profit and revenue forecast after reporting better-than-expected first quarter results. Trane’s share price is up 26% this year. Offering climate-friendly solutions has value, whatever the president of the United States may believe about “green scams”.
“We have our 2030 sustainability commitments, we’re on track,” the chief executive of Trane, Dave Regnery, told me last month at a meeting of King Charles’ Sustainable Markets Initiative at Hampton Court Palace near London.
“The reason why we haven’t backed down is because our products have great paybacks for our customers. There’s a myth that if something is sustainable, it must cost more. Our projects, in many cases, have paybacks that can be less than three years on a cash basis. So, these are very accretive to our customers and, by the way, they significantly reduce your carbon footprint.”
Like the temperatures, HVAC demand is rising. In the US, Trane saw 40% growth in orders as companies look to algorithmic data systems to manage demand. If your office cafeteria is only full twice a day, why are you heating and cooling it for 24 hours as if every table is fully occupied?
“If you think about the built environment, 30% of all the power is for buildings and 30% of that is for heating and cooling,” Regnery said. “We know—because we’ve done hundreds of thousands of energy audits—that most buildings waste about 30% of the energy that they pay for.”
“We need AI to help us reduce that 30% and we have examples where we’ve been able to take buildings that have been just commissioned, which means they’re operating the way they were designed with the most efficient equipment, and within six months, by using some of our AI algorithms, we’re able to show efficiency improvements of between 10% and 15%. The buildings are getting stronger and smarter.”
Having central heating was the boast of European homeowners in the 1970s. Now air conditioners are the subject of dinner party conversations. Cooling everyone, and everything, down is increasingly big business.
Join us for the second virtual event in Fortune 500 Europe’s C-Suite Conversations series. This exclusive session will bring together senior technology executives and industry experts for a candid discussion on what truly drives successful AI adoption. Register now.
