Verizon has deployed Ener.co’s retrofit cooling solution in 36 of its US data centers.

The Enercoat solution, which works by using a spray-on condenser coil coating, is estimated to save Verizon around $1.28 million in energy costs per year.

Ener.co said the project has saved Verizon annual electricity savings of 7,700,000 kWh and has reduced annual greenhouse gas emissions by approximately 1,700 tonnes.

The pair are now preparing a $30m nationwide data center HVAC performance upgrade project.

“Data centers are proliferating across the US and driving up energy demand; 40 percent of that energy is used for cooling. More efficient cooling performance is critical to managing data center energy and climate impacts,” said Patrick Rathje, president at Ener.co. “Over four years, we demonstrated to Verizon that our technology could deliver reliable improvements in cooling efficiency for a minimal investment, and we’re proud to have earned an expanded and extended relationship with the world’s largest telecom and data service provider.”

Founded in 2009 and headquartered in New York, Ener.co is a climate technology company specializing in HVAC solutions using carbon nanotechnology. Enercoat is the company’s flagship product. The company says its products can extend unit lifespan, restore cooling capacity, and optimize system performance.

Last month, Verizon announced it had paired with Ciena to transfer 1.6Tbps of data in its live fiber network. The carrier said the trial showed how it can ensure its fiber network supports AI and the growing demand for data.