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. This expanded capability will further support innovation across Daikin Applied’s traditional cooling and heat pump segments.
Driving innovation for hyperscale data centers
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 rapidly design, validate and deploy technologies that meet the specialized cooling requirements of these high-density environments.
Strategic investments strengthening Daikin Applied’s Data center portfolio
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.
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