Daikin Applied Invests $163M in U.S. R&D Lab for HVAC Innovation
Key Highlights
- The $163 million lab will be a hub for developing next-generation HVAC technologies tailored for hyperscale data centers.
- Four of the nine test cells are dedicated to airside technology innovations, allowing for rigorous testing under extreme conditions.
- The project aligns with Daikin Applied's broader strategy of expanding U.S. manufacturing and R&D capabilities, investing over $9 billion since 2015.
MINNEAPOLIS — Daikin Applied has announced a $163 million investment to build a 71,000-square-foot research and development test lab at its Plymouth, Minnesota headquarters. The facility, set for full completion in 2027, will focus on developing next-generation HVAC technologies for hyperscale data centers, as well as commercial and industrial cooling systems.
The lab features nine test cells, four of which are dedicated to next-generation airside technologies. Phased commissioning is already underway. According to Daikin Applied, the facility will enable engineers to replicate extreme operating conditions found in modern data centers, accelerating innovation in chillers, air handlers, heat pumps, and other high-performance HVAC equipment.
The investment complements recent acquisitions, including DDC Solutions, Chilldyne, and Alliance Air, enhancing Daikin Applied’s portfolio of data center solutions. Company leadership said the Plymouth location was chosen for its access to a skilled workforce in the Minneapolis–St. Paul metro area, supporting ongoing training and development for engineers, technicians, and cross-functional teams.
“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, COO 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."
“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.”
The project also reinforces Daikin Applied’s broader U.S. manufacturing footprint, which includes 25 plants and more than 25,000 employees nationwide. The company has invested over $9 billion in U.S. operations since 2015, combining domestic production with global R&D capabilities to support commercial and data center HVAC innovation.
For more information, visit www.daikinapplied.com.