12/10/2025
Daikin Applied announced a $163 million investment to build a state-of-the-art research and development test lab at its Plymouth, MN, headquarters. This strategic investment underscores Daikin Applied’s commitment to advancing HVAC innovation across its portfolio, from chillers and air handlers to heat pumps.
The new 71,000-square-foot lab has already begun phased commissioning of nine test cells, with full facility completion and opening planned for 2027. Building on Daikin Applied’s extensive testing capabilities, the new lab will advance product innovation for data center cooling by replicating the operating extremes of modern hyperscale environments. Four test cells will also focus on next-generation airside technologies to address emerging market trends and evolving customer needs. This expanded capability will further support innovation across Daikin Applied’s traditional cooling and heat pump segments.
“Our commitment to HVAC innovation compels us to continually push the boundaries of what’s possible. This world-class test lab is a powerful testament to that vision,” said Yu Nishiwaki, Chief Operating Officer, Daikin Applied Americas. “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.”
The investment in the new Plymouth facility expands Daikin Applied’s ability to rapidly design, validate and deploy technologies that meet the specialized cooling requirements of high-density environments.
The investment further complements recent strategic acquisitions that strengthen Daikin Applied’s portfolio of data center solutions, including DDC Solutions, a developer of ultra-high-density cooling cabinets and management software for data centers; Chilldyne, an experienced leader in negative-pressure liquid cooling systems for high-performance and AI data centers; and Alliance Air, a leader in custom air-handling equipment design and manufacturing.
Daikin Applied’s expansion in Plymouth and the Greater Minnesota region reinforces its commitment to building the industry’s most advanced testing ecosystem. The location offers strategic proximity to a highly-skilled talent base in the Minneapolis – St. Paul metro area, and the new lab will support ongoing training and development for engineers, technicians and cross-functional teams developing next-generation cooling technologies.
As part of Daikin Industries, the global company’s innovation also comes to life at the Daikin Sustainability and Innovation Center (DSIC) in Washington, D.C. Since its founding more than 100 years ago, Daikin’s business has evolved significantly, growing into a world-leading manufacturing operation with a presence in more than 170 countries. In the United States, Daikin has grown its workforce 2.3x since 2015, now with more than 25,000 employees nationwide.
As highlighted in the company’s 2025 Business and Innovation Report, the impact for Daikin in the U.S. represents more than $9 billion in total investment across 25 manufacturing plants, with sales and service operations in all 50 states, and a longstanding commitment to domestic innovation.
For decades, Daikin Applied has been a trusted leader in HVAC, delivering solutions where reliability, resiliency and efficiency cannot be compromised. Backed by Daikin’s global R&D capabilities, the company is uniquely positioned to set the pace for next-generation commercial HVAC innovation.
About Daikin Applied Americas
Daikin Applied, a member of Daikin Industries, designs and manufactures advanced commercial and industrial HVAC systems for customers around the world. The company’s technology and services play a vital role in creating comfortable, efficient and sustainable spaces to work and live – and in delivering quality air to workers, tenants and building owners. Daikin Applied solutions are sold through a global network of dedicated sales, service and parts offices. For more information, visit https://www.daikinapplied.com.
