HVAC specialist Daikin Applied is investing $163m to build a research and development test lab at its Plymouth, Minnesota, headquarters.

The 6600-square-metre lab has already begun phased commissioning of nine test cells, with full facility completion and opening planned for 2027.

Building on Daikin’s testing capabilities, the lab will advance product innovation for data centre cooling by replicating the operating extremes of modern hyperscale environments. Four test cells will also focus on airside technologies to address emerging market trends and evolving customer needs.

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

As AI adoption and cloud computing drive rapid expansion of data centres, demand continues to intensify for HVAC products designed to support hyperscale and AI-driven workloads. Analysts estimate the data centre HVAC hardware market will grow from $6.7bn in 2023 to $16.6bn by 2030. The investment in the Plymouth facility expands Daikin’s ability to design, validate and deploy technologies rapidly that meet the specialised cooling requirements of these high-density environments.

“We are proud to take this significant step forward with the ground breaking of our new innovation test lab, underscoring our commitment to shaping the future of data centres,” said Greg Jeffers, vice president at Daikin Applied. “Data centres demand comprehensive cooling, and this investment will accelerate the development of technologies that future-proof the critical infrastructure that powers our digital world.”

The investment complements recent acquisitions that strengthen Daikin’s portfolio of data centre technology, including: DDC, a developer of high-density cooling cabinets and management software for data centres; Chilldyne, a specialist in negative-pressure liquid cooling for high-performance and AI data centres; and Alliance Air, which designs and makes custom air-handling equipment.

The location offers proximity to a skilled talent base in the Minneapolis and St Paul metro area, and the lab will support training and development for engineers, technicians and cross-functional teams developing cooling technologies.

Japan-based Daikin Industries (www.daikin.com) has evolved significantly, growing into a worldwide manufacturing operation with a presence in more than 170 countries. In the USA, Daikin has more than doubled its workforce since 2015, now with 25,000 employees nationwide. Daikin Applied (www.daikinapplied.com) designs and manufactures commercial and industrial HVAC systems for customers around the world.