Minneapolis – October 14, 2026 -- Daikin Applied has raised production capacity for custom-built hydronic and electric systems by approximately 150% with the opening of its expanded 191,000-square-foot Modular Solutions facility in Phoenix, Arizona.
The plant grows the company's modular manufacturing footprint from 58,000 to 191,000 square feet. Daikin Applied says factory-built mechanical systems give customers faster deployment, tighter quality control and simpler onsite installation than traditional stick-built construction. Complete systems are assembled and tested in a controlled factory environment, which the company says reduces schedule risk.
Daikin Applied targets data centers, healthcare and campuses with Modular Solutions
Modular Solutions serve data centers, healthcare facilities, higher education campuses and industrial operations, where schedule certainty and system performance are critical. Daikin Applied says the expanded plant lets it cover these markets through one integrated process spanning design, manufacturing, commissioning and service.
Data centers are a key driver. Accelerated construction timelines and rising infrastructure requirements are pushing providers toward factory-built cooling, according to the company. It cites forecasts that prefabricated modular data center solutions will grow significantly through 2030.
Stephen McGee, general manager of Modular Solutions, said the added capacity will let Daikin Applied support more customers and take on larger projects.
Phoenix plant integrates Daikin-owned liquid cooling and rack containment technology
The facility enables in-house production and factory integration of Daikin-owned technologies, including direct-to-chip Chilldyne® liquid cooling distribution units (CDUs) and DDC Solutions S-Series rack containment.
Daikin Applied says the investment strengthens its turnkey delivery, from design and manufacturing to commissioning and service. It says this simplifies supply chains, improves on-site safety and gives customers certainty on delivery and deployment.
New facility adds R-32 rooftop units, LED lighting and upgraded insulation
The building features upgraded insulation, full LED lighting and high-efficiency Daikin R-32 rooftop HVAC units.
The plant is still ramping toward full production capacity. Yu Nishiwaki, president and CEO of Daikin Applied Americas, said that expanding what can be built and tested in the factory gives customers a more reliable path to getting critical systems running.