What PACE AI does

PACE AI (legal entity PaceControls, Inc., headquartered in Princeton, NJ) develops and deploys a patented edge+cloud AI/ML platform for optimizing HVACR (heating, ventilation, air conditioning, and refrigeration), process heating/cooling, and related industrial equipment. The architecture pairs rugged IIoT edge nodes with a sensor suite at the equipment layer with cloud-based AI/ML models that optimize how machines respond to control inputs, layered with fault detection, predictive maintenance, and the patented ThrottleBack automated demand response technology. The platform integrates additively with existing building management systems (BMS) without replacing them and has a multi-year track record of zero equipment warranty issues. Four generations of UL Listed universal smart nodes underpin the solution, validated across tens of thousands of installations and over 90 IPMVP-compliant studies achieving 25%-30%+ verified cost and carbon savings and 1-3 year payback. Verticalized offerings include Smart Buildings (commercial properties, multi-family, hospitality, healthcare, government, education), Smart Grid (OpenADR VEN/DER, Virtual Power Plant), Smart Home, Industrial (manufacturing, steel, food and beverage, pharmaceutical), and Mobile Cooling/Cold Chain.

PACE AI operates a horizontal market approach spanning commercial, industrial, and residential segments plus utilities and grid operators. Revenue mechanics are diversified across three streams: (1) Efficiency as a Service (EaaS) subscription-style contracts funded by utility On-Bill Financing/Repayment programs in NJ, CA, NY, OH, TX, and Constellation, structured so that monthly savings exceed monthly payments from day one; (2) direct sales with utility incentives, often with optional 3-year savings warranty underwritten by Munich Re's Hartford Steam Boiler; and (3) licensing, co-development funding, and royalties through OEM partners including Hitachi and Liberty Homes. Distribution is multi-channel: direct enterprise field sales (Hitachi, large real estate clients, Sodexo industrial accounts), channel/reseller (AWS sales teams and authorized resellers, Rexel Energy Solutions national stocking), As-A-Service financier (Sparkfund, with 2,000 projects across 43 states), and utility program participation. The commercial motion is reinforced by participation in DOE IMPEL, Greentown Labs, NYSERDA NextGen Buildings, and Exelon 2c2i programs.

The company was founded in Philadelphia in 2021 with funding from the U.S. Department of Energy and Ben Franklin Technology Partners, and reached Series A in January 2026, enabling relocation to the Princeton AI Hub co-founded by Microsoft, CoreWeave, the State of New Jersey, and Princeton University. Intermediate financing and partnerships include Hitachi co-development funding (January 2022), SBA International Trade Loan (February 2023), AWS MAP investment (July 2024), and Munich Re/HSB warranty (November 2023). Headcount is 11-50 employees, with active regional offices in Chicago, Louisville, and San Diego, and planned international offices in Tokyo, Birmingham (UK), and Barcelona by 2027. Revenue is not publicly disclosed.

Name

PACE AI

Legal name

PaceControls

Website

https://pacecontrols.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Short description

PACE AI develops a patented edge+cloud AI/ML platform with IIoT smart nodes that optimize HVACR, process heating/cooling, and industrial equipment, delivering 25-30%+ savings for commercial buildings, multi-family, industrial, residential, and utility grid services customers across North America with planned global expansion.

Ownership category

akta.pro rank

Product category

Building Energy Management Software

NAICS

Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use (334512), Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (5182)

SIC

Auto Controls For Regulating Residential & Comml Environments (3822), Industrial Instruments For Measurement, Display, And Control (3823), Services-Computer Integrated Systems Design (7373)

akta.pro primary industry

Smart Building Software Platforms (IWMS/CAFM Integration, Digital Twin, Command Center) (BPABAGAG)

akta.pro secondary industries

Edge AI Deployment, Orchestration & OTA Model Updates (HDAAAJAI), End-to-End Enterprise AI Platforms (MLOps & Model Lifecycle Management) (HDAEANAA)

Keywords

• Smart building AI
• HVACR energy optimization
• Edge IoT analytics
• Virtual power plant
• Demand response software

Headquarters

HQ city

Philadelphia

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales

Revenue model

1. Efficiency as a Service (EaaS): Solutions sold as a service model where customers pay over time rather than upfront. PACE AI qualifies for electric and gas utility On-Bill Funding and On-Bill Repayment programs (OBF/OBR) that pay 100% of project cost, with payments spread over 3-5 years as a line item on utility bill. Savings exceed payments, making customers cash-flow positive from Day 1.
2. Efficiency as a Service via AWS: Delivering PACE AI cost and carbon reductions via AWS sales teams and authorized resellers. Targeting AWS's deep client base in state/local governments and higher education, which can use procurement contracting vehicles like NASPO ValuePoint and OMNIA.
3. Licensing and Co-development: Licensing arrangements with OEM partners like Hitachi for global building and industrial applications. Co-development funding with partners for new AI/ML solutions for IIoT applications. Partnership with Liberty Homes using Pay As You Save (PAYS) structure.
4. Virtual Power Plant Revenue: Smart grid revenues from ThrottleBack ADR technology enabling buildings to participate in demand response programs and VPP operations. Additional revenue from demand charge reductions (PDR measures).

Pricing tiers

Go-to-market motion3 records

Distribution channels6 records

Marketing channels6 records

Core offering

PACE AI develops a patented edge+cloud AI/ML platform that combines rugged Industrial IoT (IIoT) edge nodes and sensor suites with cloud-based artificial intelligence to optimize HVACR and process heating/cooling equipment. The platform delivers 25%-30%+ energy and carbon savings across commercial buildings, industrial facilities, smart grid, residential, and cold chain applications, and includes automated demand response and virtual power plant capabilities compatible with all building management systems.

Product overview

PACE AI offers a unified edge+cloud AI/ML technology platform with multiple solution verticals. The core PACE AI Edge+Cloud Solutions platform combines IIoT edge nodes and sensors with cloud-based AI/ML optimization. This core platform powers distinct vertical solutions: Smart Buildings (HVACR optimization for commercial properties), Smart Grid (demand response and virtual power plant via OpenADR), Smart Home (residential heating/cooling), Industrial & Data (manufacturing process optimization), and Mobile Cooling/Cold Chain (logistics). Key features include the patented ThrottleBack ADR technology, Virtual Power Plant capability, and Efficiency as a Service financing. All solutions leverage the same proven 25%-30%+ energy savings technology with IPMVP-compliant measurement.

Differentiator

Problem solved

Functional benefit

Products and services

• Smart Buildings Solutions HVACR edge+cloud AI/ML solution for commercial properties including office, retail, hospitality, healthcare, government, schools, and warehouses. Used by major property managers and utility programs, eligible for electric and gas utility incentives, ESPC programs, and utility On-Bill Funding.
• Smart Grid Solutions Ruggedized edge node solutions with OpenADR VEN (Virtual End Node) and DER (Distributed Energy Resource) enablement features for smart grid demand response and virtual power plant operations, for electric utilities, grid operators, and demand response aggregators.
• Smart Home Solutions Residential heating and cooling applications delivered via OEM partner, providing 25%-30%+ savings on homeowner heating and cooling bills with fault detection and predictive maintenance for single-family homes and multi-family residences.
• Industrial and Data Solutions IIoT solutions for industrial process heating, cooling, compressed dry air, and other manufacturing applications. Optimizes and monitors equipment such as electric arc furnaces and foundry operations, delivering energy savings and process efficiency for steel castings, food and beverage, and pharmaceutical manufacturers.
• Mobile Cooling and Cold Chain Solutions Edge+cloud solutions for cold chain logistics, refrigerated warehouses, and cold storage buildings, providing cost reduction, mobile asset monitoring, and fault detection for cold chain security.

Quantifiable outcome

• 25%-30%+ HVACR cost and carbon savings verified across 90+ IPMVP-compliant studies
• +5 more outcomes

Named customers8 records

Segments5 records

Ideal customer profiles6 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability4 records

Feature4 records

Partnerships

Twelve partnerships are on record, tiered minor, core, flagship and strategic.

• Greentown LabsminorGTM or Marketing Partner · 23 June 2026Selected for partnership program with Greentown Labs - major energy and climate tech accelerator with offices in Boston and Houston and large corporate partnership involvement.
• U.S. Department of Energy (IMPEL Accelerator)coreGTM or Marketing Partner · 27 September 2024Selected for DOE IMPEL Cohort 6 market accelerator. IMPEL has helped launch many smart energy and building solutions. Phase 2 acceleration with advice from Silicon Valley executives and venture professionals at LBNL.
• Amazon Web Services (AWS)flagshipTechnology or Integration · 8 July 2024AWS is PACE AI's cloud partner. AWS is helping scale platforms via AWS Migration Acceleration Program (MAP), making an investment via MAP to speed to market. PACE AI now delivering solutions via AWS sales teams and authorized resellers worldwide, targeting state/local governments and higher education via NASPO ValuePoint and OMNIA.
• Lawrence Berkeley National Laboratory / DOE FLEXLABcoreStrategic or Co-development Partner · 24 April 2024California Energy Commission CalTestBed award to work with DOE's FLEXLAB team. Demonstrating new smart grid features of next-generation edge AI/ML technology. Also part of CalFlexHub for dynamic energy management.
• Exelon FoundationminorGTM or Marketing Partner · 28 February 2024Selected as Finalist in Exelon's Climate Change Investment Initiative (2c2i) competition for work in Exelon's service territories.
• Munich Re (Hartford Steam Boiler)coreStrategic or Co-development Partner · 29 November 2023Partnership with Munich Re's Hartford Steam Boiler Inspection and Insurance division (HSB) for savings warranty. HSB provides 3-year Savings Warranty on PACE AI savings, making it a breakthrough AI/ML solution with 20%-30%+ savings, 30%-100% utility incentives, and guaranteed savings.
• Montgomery County Economic Development Corporation (Hospitality Tech Accelerator)minorGTM or Marketing Partner · 7 April 2023Selected for Hospitality Tech Accelerator sponsored by Maryland's Montgomery County Economic Development Corporation, including locally-based Marriott International and Choice Hotels, with guidance from Accenture's hospitality practice.
• SodexostrategicStrategic or Co-development Partner · 24 November 2021Global expansion in Industrial IoT with Sodexo for industrial and manufacturing clients in E.U. and Asia. Process heating and cooling demands optimization for carbon footprints and operating costs.
• SparkfundcoreChannel Partner/ Reseller/ Distributor · 15 September 2021Master Service Agreement with Sparkfund for As-A-Service energy efficiency, smart grid, water conservation solutions. Sparkfund Platform has completed 2,000 projects in 43 states.
• Liberty HomesminorStrategic or Co-development Partner · 20 July 2021Partnership with Liberty Homes (founding team of U.S. DOE veterans) using Pay As You Save (PAYS) structure for zero-upfront-cost energy efficiency projects for homes and small commercial buildings.
• Rexel Energy SolutionscoreChannel Partner/ Reseller/ Distributor · 16 February 2021National stocking partner for key accounts in utility programs and property management. Rexel is the leading supplier of energy technology to the ESCO industry and big utility energy efficiency and smart grid programs across North America, part of Paris-based Rexel (EURONEXT:RXL).
• Hitachi High-Tech AmericaflagshipStrategic or Co-development Partner · 29 January 2021Strategic partnership with Hitachi for Smart Buildings, Smart Grid, Smart Cities, and Industrial IoT. Hitachi announced accelerated partnering and distribution for PACE AI. Includes co-development of new AI/ML solutions for IIoT applications and combined water+energy saving initiatives. Hitachi also joined as Principal Partner for COP26 climate summit.

Scale indicators9 records

Recent moves7 records

Expansion highlights8 records

Direct peers

• BrainBox AI: AI-driven HVAC optimization for commercial buildings. BrainBox AI applies predictive and self-adapting AI to building HVAC systems, addressing the same energy/cost-reduction pain point as PACE AI's Edge+Cloud Solutions for commercial property managers.
• 75F: IoT and cloud-based smart HVAC controls delivering predictive, zone-level optimization of commercial HVAC equipment. Targets the same commercial real estate and light-commercial customer base as PACE AI Smart Buildings.
• GridPoint: Intelligent energy management and submetered demand-response platform for multi-site commercial and retail customers. Closely overlaps PACE AI's Smart Grid (OpenADR/VPP) and Smart Buildings offerings, with similar utility channel economics.
• Verdigris Technologies: AI-powered energy analytics and fault detection for commercial and industrial facilities. Competes head-to-head with PACE AI's predictive maintenance and HVACR optimization use cases via edge hardware plus cloud analytics.
• Switch Automation: Smart-building analytics platform aggregating building data into optimization, fault detection, and ESG/carbon dashboards. Comparable to PACE AI's BMS-compatible software layer for enterprise real estate portfolios.

Emerging players

• Bidgely: Utility-focused AI energy disaggregation and customer analytics platform. Adjacent overlap with PACE AI's smart-grid/utility customer segment and AI/ML applied to energy consumption data.
• Awair: Building-grade indoor air quality and occupancy sensors feeding into energy/IAQ analytics. Partial overlap in commercial-building sensor and edge-node deployment with PACE AI's IIoT sensor suite.

Broad incumbents

• Honeywell Building Technologies: Incumbent BMS/HVAC controls portfolio (Honeywell Forge) targeting the same Fortune 500 real estate and utility customers as PACE AI. Represents the legacy stack that PACE AI's "complementary to existing BMS" positioning must sell into.
• Johnson Controls (OpenBlue): Global incumbent in building automation and HVAC controls, with OpenBlue enterprise analytics. Competes across the same commercial real estate and VPP-adjacent smart-building market segments.
• Trane Technologies: Major HVAC OEM and building controls provider with services for energy optimization and grid-interactive efficient buildings. Comparable in serving the same Fortune 500 property managers and utilities adopting demand response/VPP programs.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about PACE AI