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Expanded Phoenix facility increases production capacity for custom factory-built cooling systems, cutting deployment time for mission-critical infrastructure.
PHOENIX, October 14, 2026 - Daikin Applied, a global leader in commercial and industrial HVAC solutions, announced the opening of its newly expanded, 191,000-square-foot Modular Solutions facility in Phoenix, Arizona. The investment increases production capacity for custom-built hydronic and electric systems by approximately 150%, strengthening Daikin Applied’s ability to deliver scalable, pre-tested solutions to customers across a growing range of industries.
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.
"This investment reflects our commitment to helping customers move faster and with greater confidence," said Yu Nishiwaki, president and CEO of Daikin Applied Americas. "By expanding what we can build and test in the factory, we are giving customers across many industries a more reliable path to getting critical systems up and running."
Modular Solutions are used across a variety of applications where schedule certainty and system performance are critical, including data centers, healthcare facilities, higher education campuses and industrial operations. The expanded facility positions Daikin Applied to meet demand across these markets with a single, integrated approach to design, manufacturing, commissioning and service.
"This expansion represents an important step in the continued growth of our Modular Solutions business," said Stephen McGee, general manager of Modular Solutions at Daikin Applied. "The additional capacity allows us to support more customers, take on larger projects and continue delivering the quality and reliability they count on."
Among the sectors driving strong interest in modular approaches is the data center market, where accelerated construction timelines and increasing infrastructure requirements are pushing providers toward factory-built cooling solutions. 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.
"Customers across multiple industries are looking to accelerate project schedules while maintaining cost discipline, performance and quality," continued McGee. "Expanded Modular Solutions capabilities help us meet that demand while strengthening our position in high-growth markets, including data centers."
The Phoenix expansion strengthens Daikin Applied’s manufacturing footprint and end-to-end delivery capabilities. Key highlights include:
As the facility ramps to full production capacity, Daikin Applied will further expand its ability to support customers with integrated, full-lifecycle solutions backed by the company’s global manufacturing and engineering expertise.
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