Heatwave Spurs HVAC Boom, Raises Cooling Costs

As summer temperatures soar, placing over 150 million Americans under heat advisories, air-conditioning companies are experiencing significant growth. Stocks of cooling company Trane climbed 40% year-to-date after a positive earnings report.

The rise in temperatures is impacting the tech sector, with HVAC companies capitalizing on the increased need to cool energy-intensive data centers. This demand is expected to drive significant growth in the cooling market for data centers, potentially reaching $30 billion by 2030.

Meanwhile, the cost of staying cool is climbing. The average U.S. electricity bill during the summer months is expected to hit a 10-year high of $720. Nearly 80% of U.S. adults are concerned about these rising costs, with many resorting to credit solutions to manage payments.

Upcoming EPA regulations aimed at reducing the HVAC industry’s environmental impact could further increase costs.

With global temperatures reaching record highs in July and extreme heat causing over 11,000 U.S. deaths last year, the demand for effective cooling solutions should continue to rise.

For more information, read the full article on Sherwood.