Daikin Applied in the US is investing $163 million in a research and development test lab at its Plymouth, Minn., headquarters.
This strategic investment underscores Daikin Applied's commitment to advancing HVAC innovation across its portfolio, from chillers and air handlers to heat pumps and hyperscale data centre cooling technologies.
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 centre 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.
Chief Operating Officer at Daikin Applied Americas, Yu Nishiwaki, said the company is compelled to push the boundaries of HVAC innovation.
“This world-class test lab is a powerful testament to that vision," he said.
“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."
Analysts estimate the data centre HVAC hardware market will grow from $US6.7 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.
Greg Jeffers, vice president, Data Centre Solutions at Daikin Applied Americas said this investment will accelerate the development of technologies that future-proof the critical infrastructure that powers the digital world.
The investment further complements recent strategic acquisitions that strengthen Daikin Applied's portfolio of data centre solutions, including:
- DDC Solutions, a developer of ultra-high-density cooling cabinets and management software for data centres.
- Chilldyne, an experienced leader in negative-pressure liquid cooling systems for high-performance and AI data centres.
- Alliance Air, a leader in custom air-handling equipment design and manufacturing.