Daikin Industries moved to capitalize on surging demand for AI infrastructure by agreeing to acquire Dynamic Data Centers Solutions, a San Diego-based startup specializing in cooling systems for artificial intelligence data centers.
The Japanese air conditioning giant will complete the purchase through its Minneapolis subsidiary Daikin Applied Americas by late August, though financial terms weren’t disclosed. The deal targets DDC Solutions’ rack-level cooling technology, which addresses heat management challenges from high-performance AI computing equipment.
The global data center cooling market was valued at $16.84 billion in 2024 and is projected to reach $42.48 billion by 2032, driven largely by AI adoption requiring more intensive thermal management than traditional computing.
Founded in 2019 under CEO Keith Markley, DDC Solutions provides individual server rack cooling systems with automated controls that analyze power consumption and heat generation patterns. The technology represents a shift from traditional room-level cooling toward targeted solutions for high-density AI workloads.
DDC’s customers include Hudson Interxchange and TierPoint, according to company materials. The acquisition follows similar industry consolidation as equipment manufacturers race to serve AI infrastructure buildouts.
While Daikin already serves the broader data center market, the deal specifically targets the emerging AI segment where traditional air cooling methods are inadequate for managing heat generated by higher power densities. The move positions Daikin to compete with established players like Vertiv and Schneider Electric in the rapidly expanding liquid cooling space.
