Japanese air conditioning giant Daikin is set to establish a manufacturing facility in Mexico dedicated to producing cooling systems for data centers, with an investment of approximately 10 billion yen (around 423 million yuan at current exchange rates), according to a report from Nikkei Asia.

The new plant will focus on manufacturing Air Handling Units (AHUs), which supply cool air to server rooms within data centers. In addition to this new facility, Daikin plans to add a fourth production line for chillers at its existing plant in the state of San Luis Potosi, Mexico.

Daikin's data center cooling equipment business in the North American market currently generates annual revenue of approximately 150 billion yen (roughly 6.34 billion yuan), with half of that figure coming from hyperscale cloud service providers. The company projects that its overall data center cooling revenue will reach 800 billion yen (approximately 33.8 billion yuan) by fiscal year 2030, representing a growth of more than 400% compared to fiscal year 2025.