Home Logo
Log In
Daikin Applied Invests $163M in Advanced R&D Test Lab to Bolster HVAC Innovation for Data Centers and Beyond

Daikin Applied Invests $163M in Advanced R&D Test Lab to Bolster HVAC Innovation for Data Centers and Beyond

Daikin

17 Feb 2026

State-of-the-art R&D test lab to accelerate development of next-generation cooling technologies for hyperscale data centers and traditional HVAC markets, with full lab completion planned for 2027.

MINNEAPOLIS - December 9, 2025

Daikin Applied, a global leader in commercial and industrial HVAC solutions, today announced a $163 million investment to build a state-of-the-art 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 center 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 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.

“Our commitment to HVAC innovation compels us to continually push the boundaries of what’s possible. This world-class test lab is a powerful testament to that vision,” said Yu Nishiwaki, Chief Operating Officer at Daikin Applied Americas. “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."

test lab

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.
 

“We are proud to take this significant step forward with the groundbreaking of our new innovation test lab, underscoring our commitment to shaping the future of data centers,” said Greg Jeffers, Vice President, Data Center Solutions at Daikin Applied Americas. “Data centers demand comprehensive cooling solutions, and this investment will accelerate the development of technologies that future-proof the critical infrastructure that powers our digital world.”

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.

Commitment to U.S. Manufacturing and Workforce Growth

Daikin Applied’s expansion in Plymouth and the Greater Minnesota region reinforces its commitment to building the industry’s most advanced testing ecosystem. The location offers strategic proximity to a highly skilled talent base in the Minneapolis–St. Paul metro area, and the new lab will support ongoing training and development for engineers, technicians and cross-functional teams developing next-generation cooling technologies.
 
As part of Daikin Industries Ltd., the global company’s innovation also comes to life at the Daikin Sustainability and Innovation Center (DSIC) in Washington, D.C. Since its founding more than 100 years ago, Daikin’s business has evolved significantly, growing into a world-leading manufacturing operation with a presence in more than 170 countries. In the United States, Daikin has grown its workforce 2.3x since 2015, now with more than 25,000 employees nationwide.
 
As highlighted in the company’s 2025 Business and Innovation Report, the impact for Daikin in the U.S. represents more than $9 billion in total investment across 25 manufacturing plants, with sales and service operations in all 50 states, and a longstanding commitment to domestic innovation.
 
For decades, Daikin Applied has been a trusted leader in HVAC, delivering solutions where reliability, resiliency and efficiency cannot be compromised. Backed by Daikin’s global R&D capabilities, the company is uniquely positioned to set the pace for next-generation commercial and data center HVAC innovation.