Daikin Applied has announced a $163 million investment to build an advanced research and development test lab at its headquarters in Plymouth, Minnesota, with full completion scheduled for 2027. The new facility aims to accelerate innovation in cooling technologies for hyperscale data centers and traditional HVAC applications, reinforcing the company’s position in commercial and industrial climate solutions.
The 71,000-square-foot lab will include nine test cells, which are being commissioned in phases. Several of these will replicate extreme operating conditions found in modern data centers to support the development of high-performance cooling systems. Four test cells will be dedicated to airside technologies, targeting evolving market demands across HVAC segments including chillers, heat pumps, and air handlers.
This investment complements recent strategic acquisitions by Daikin Applied to strengthen its data center portfolio. These include DDC Solutions, specializing in high-density cooling cabinets and management software; Chilldyne, focused on negative-pressure liquid cooling for high-performance and AI data centers; and Alliance Air, which manufactures custom air-handling equipment.
The expansion in Minnesota also supports Daikin Applied’s commitment to U.S.-based manufacturing and workforce development. The lab will serve as a hub for engineering training and cross-functional collaboration, leveraging the talent pool in the Minneapolis–St. Paul area.
