#United States #Data Centers #Plymouth #Daikin Applied #HVAC Innovation

Daikin Applied's $163 Million HVAC Innovation Investment

Daikin Applied, a prominent name in commercial and industrial HVAC solutions, has unveiled a game-changing initiative—an investment of $163 million dedicated to the establishment of a cutting-edge research and development test lab at its headquarters in Plymouth, Minnesota. This substantial investment demonstrates Daikin’s unwavering commitment to driving innovation in HVAC technology tailored for both data centers and traditional markets.

Overview of the New Facility

The new facility will encompass an impressive 71,000 square feet and is set to revolutionize the HVAC landscape by enhancing Daikin Applied's capabilities in the cooling technology domain. The lab will start operational commissioning with nine test cells, with the full completion of the facility anticipated by 2027. This expansion builds upon Daikin’s already extensive range of testing capabilities and aims to innovate cooling solutions for hyperscale data centers, as well as validate next-generation technologies for air handling.

Four of the test cells will focus explicitly on the airside technologies to adapt to emerging market trends and the evolving needs of customers. This strategic initiative will bolster Daikin Applied’s traditional cooling and heat pump segments.

Addressing the Demand for Data Centers

As the adoption of artificial intelligence accelerates and cloud computing continues to grow, the demand for specialized HVAC solutions in data centers is on the rise. Industry analysts project an increase in the data center HVAC hardware market from $6.7 billion in 2023 to a staggering $16.6 billion by 2030. Daikin's investment in the Plymouth facility is poised to enable rapid design, validation, and implementation of advanced technologies that fulfill the cooling needs of high-density environments.

Greg Jeffers, Vice President of Data Center Solutions at Daikin Applied Americas, expressed enthusiasm about the investment, stating, "We are proud to take this significant step forward with the groundbreaking of our new innovation test lab, underscoring our commitment to shaping the future of data centers. Data centers demand comprehensive cooling solutions, and this investment will accelerate the development of technologies that future-proof the critical infrastructure that powers our digital world."

Strategic Acquisitions Enhancing Daikin’s Portfolio

The $163 million investment also aligns with Daikin Applied's recent strategic acquisitions aimed at strengthening its data center solutions portfolio. These acquisitions include:

• - DDC Solutions: Known for its ultra-high-density cooling cabinets and management software catered to data centers.
• - Chilldyne: A pioneer in negative-pressure liquid cooling systems optimized for high-performance and AI-centered data centers.
• - Alliance Air: A leader in designing and manufacturing custom air-handling equipment.

Such strategic moves indicate Daikin’s deliberate focus on advancing its technologies and services to meet the rapidly evolving demands of the market.

Commitment to Domestic Manufacturing and Workforce Development

Daikin Applied’s growth in Plymouth and the larger Minnesota region signifies its dedication to establishing an advanced testing ecosystem in the HVAC industry. Proximity to a skilled workforce in the Minneapolis-St. Paul area not only supports Daikin's research initiatives but also emphasizes ongoing training and development for engineers and technicians in next-gen cooling technologies.

Additionally, Daikin's global presence and longevity, backed by more than a century of excellence, has fostered a robust operation across over 170 countries. The company has significantly expanded its U.S. workforce, having increased by 2.3 times since 2015, now employing over 25,000 individuals nationally. According to its 2025 Business and Innovation Report, Daikin has invested over $9 billion in 25 manufacturing plants throughout the U.S., reinforcing their commitment to innovation and domestic growth.

Conclusion

For decades, Daikin Applied has been a trusted leader in HVAC solutions, where reliability, efficiency, and sustainability are pivotal. This substantial investment in a state-of-the-art R&D lab not only supports the future of data center cooling solutions but positions Daikin to remain at the forefront of HVAC innovation, ready to meet the dynamic demands of the modern industrial landscape.

For more information regarding Daikin Applied, you can visit their website or follow them on LinkedIn to stay updated on the latest developments in HVAC innovations.