Battery manufacturer Furukawa Electric (TYO:5801) has agreed to invest about 55 billion yen to expand production of water-cooling modules and air-cooling heat sinks for data centers, according to a Tokyo bourse filing on Monday.

The investment includes about 51 billion yen for water-cooling modules, with new plants in Thailand and expanded capacity in the Philippines, alongside around 4 billion yen for air-cooling heat sink facilities in China and the Philippines.

Mass production is scheduled to begin in July 2026 for air-cooling heat sinks, and between January 2027 and January 2028 for water-cooling modules.

The company expects the expansion to contribute significantly to sales, targeting at least 100 billion yen in water-cooling module revenue by fiscal 2027 and 400 billion yen by fiscal 2030, with minimal impact on fiscal 2026 results.