Daikin Applied has announced a $163 million investment to build a new research and development test lab at its headquarters in Plymouth, Minnesota. The facility, covering 71,000 square feet, will focus on advancing HVAC technologies for both traditional applications and the growing needs of hyperscale data centers. Nine test cells are being commissioned in phases, with the full lab expected to be completed by 2027. Several test cells will replicate the operating conditions of high-density data centers, while others will support development of new airside and heat pump technologies.
The expansion aligns with rising demand for data center cooling solutions driven by AI workloads and cloud growth. The project also complements Daikin Applied’s recent acquisitions in data center cooling, including DDC Solutions, Chilldyne, and Alliance Air, strengthening its portfolio across liquid cooling, high-density systems, and custom air-handling equipment.
The investment supports Daikin’s broader U.S. strategy, which includes workforce development, manufacturing growth, and continued innovation across its national operations. The Minnesota lab will serve as a training and development hub for engineering and technical teams. Daikin notes that the facility will contribute to ongoing development of HVAC technologies for commercial buildings and data centers, reflecting the company’s long-term focus on reliability, resilience, and energy-efficient solutions.
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