Daikin Industries is building a $163 million research facility in Minnesota as the Japanese air conditioning giant moves to capitalize on the surging need for cooling systems at power-hungry AI data centers.
The 71,000-square-foot lab, set to open in 2027 at subsidiary Daikin Applied Americas’ Plymouth headquarters, will house nine test cells designed to replicate extreme conditions found in hyperscale computing environments. The investment supports Daikin’s ambition to triple its North American data center cooling revenue to more than ¥300 billion ($1.91 billion) by March 2031.
The push comes as analysts project the global data center HVAC market will nearly triple from $6.7 billion in 2023 to $16.6 billion by 2030, driven by artificial intelligence workloads that generate far more heat than traditional servers.
Daikin has been on an acquisition spree to bolster its position. The company purchased DDC Solutions in August and Chilldyne in November, adding specialized cabinet cooling and direct-to-chip liquid cooling technologies to its portfolio.
Whether Daikin can deliver on its aggressive growth targets remains uncertain. Competition in the sector is intensifying as established HVAC manufacturers and startups alike scramble to serve hyperscale operators building out AI infrastructure across North America.
