Daikin Applied Expands Phoenix Facility to Meet Growing Demand

MINNEAPOLIS, Oct. 14, 2026 /CourierPR/ -- Daikin Applied, a global leader in commercial and industrial HVAC solutions, has significantly expanded its Modular Solutions facility in Phoenix, Arizona, to meet the growing demand for factory-built cooling systems. The new, 191,000-square-foot facility more than doubles the company's modular manufacturing space, from 58,000 to 191,000 square feet, increasing production capacity for custom-built hydronic and electric systems by approximately 150%. This expansion underscores Daikin Applied's commitment to supporting customers with faster deployment, greater quality control, and simplified onsite installation. By assembling and testing complete systems in a controlled factory environment, the company helps customers reduce schedule risk and bring critical infrastructure online sooner.

The Phoenix facility is designed to support a growing range of markets, including data centers, healthcare facilities, higher education campuses, and industrial operations. With the additional capacity, Daikin Applied can now support more customers, take on larger projects, and continue delivering the quality and reliability that customers expect.

The data center market, in particular, is driving strong interest in modular approaches due to accelerated construction timelines and increasing infrastructure requirements. Prefabricated modular data center solutions are forecasted to grow significantly through 2030, and Daikin Applied's expanded capacity helps customers keep pace with that demand.

The expanded facility also features advanced technology integration, enabling in-house production and factory integration of cutting-edge, Daikin-owned technologies, including direct-to-chip Chilldyne® liquid cooling distribution units (CDUs) and DDC Solutions S-Series rack containment. The new space is equipped with sustainable operations, including upgraded insulation, full LED lighting, and high-efficiency Daikin R-32 rooftop HVAC units. As the facility ramps to full production capacity, Daikin Applied will further enhance its ability to support customers with integrated, full-lifecycle solutions backed by the company's global manufacturing and engineering expertise.

The expansion reflects rising demand for factory-built mechanical systems, which give customers faster deployment, greater quality control, and simplified onsite installation compared with traditional stick-built construction. By assembling and testing complete systems in a controlled factory environment, Daikin Applied helps customers reduce schedule risk and bring critical infrastructure online sooner.