MINNEAPOLIS —
Daikin Applied announced a $163 million investment to build a research and development test lab at its Plymouth, Minnesota headquarters.
The new 71,000-square-foot lab has already begun phased commissioning of nine test cells, with full facility completion and opening planned for 2027. Building on Daikin Applied’s extensive testing capabilities, the new lab will advance product innovation for data center cooling by replicating the operating extremes of modern hyperscale environments. Four test cells will also focus on next-generation airside technologies to address emerging market trends and evolving customer needs.
“Our commitment to HVAC innovation compels us to continually push the boundaries of what’s possible. This world-class test lab is a powerful testament to that vision,” said Yu Nishiwaki, chief operating officer at Daikin Applied Americas. “Innovation is at the heart of everything we do, and with this new facility, we are well positioned to equip our customers with the advanced technologies required to meet the dynamic demands of today’s environment.”
As AI adoption and cloud computing drive rapid expansion of data centers, demand continues to intensify for HVAC solutions designed to support hyperscale and AI-driven workloads. Analysts estimate the data center HVAC hardware market will grow from $6.7 billion in 2023 to $16.6 billion by 2030. The investment in the new Plymouth facility expands Daikin Applied’s ability to design, validate, and deploy technologies that meet the specialized cooling requirements of these high-density environments.
“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,” said Greg Jeffers, vice president, Data Center Solutions at Daikin Applied Americas. “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.”
The investment further complements recent strategic acquisitions that strengthen Daikin Applied’s portfolio of data center solutions, including:
- DDC Solutions, a developer of ultra-high-density cooling cabinets and management software for data centers.
- Chilldyne, an experienced leader in negative-pressure liquid cooling systems for high-performance and AI data centers.
- Alliance Air, a leader in custom air-handling equipment design and manufacturing.
Daikin Applied’s expansion in Plymouth and the greater Minnesota region reinforces its commitment to building an advanced testing ecosystem. The location offers strategic proximity to a highly skilled talent base in the Minneapolis–St. Paul metro area, and the new lab will support ongoing training and development for engineers, technicians, and cross-functional teams developing next-generation cooling technologies.
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As part of Daikin Industries Ltd., the global company’s innovation comes to life at the Daikin Sustainability and Innovation Center (DSIC) in Washington, D.C. Since its founding more than 100 years ago, Daikin’s business has evolved significantly, growing into a manufacturing operation with a presence in more than 170 countries. In the United States, Daikin has grown its workforce 2.3x since 2015, now with more than 25,000 employees nationwide.
As highlighted in the company’s 2025 Business and Innovation Report, the impact for Daikin in the U.S. represents more than $9 billion in total investment across 25 manufacturing plants, with sales and service operations in all 50 states, and a longstanding commitment to domestic innovation.
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