TRG | The Bottom Line – 8/2

While the debate around the health of non-residential construction continues, there is zero ambiguity on the outlook of one subsector, data center construction. AFCOM, a leading voice among data center professionals, earlier this year released its annual report on the industry citing an expected six-fold increase in new data center construction over the next three years. “We are at the cusp of crafting a digital era like no other. In our world of unceasing connectivity, the reliance on data center operations is skyrocketing, magnifying the indispensability of the resources they provide every moment,” said Bill Kleyman, Data Center & Technology Executive. TRG coverage companies Worthington and Armstrong World announced this week its JV, Wave, had acquired Data Center Resources, LLC. The NY-based company designs and manufacturers modular aisle containment solutions that optimize power usage and increase cooling efficiencies with data centers. The products also help “reduce construction lead times and skilled labor availability.” For Worthington (WOR), the acquisition will boost its Building Products Group, which already contributes 42% of net sales and increases its exposure to a dynamic growth sector to years to come.