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Corporate/Financial
OSAKA, Japan, August 6, 2025 – Daikin Industries, Ltd. today announced it has entered into a definitive agreement to acquire Dynamic Data Centers Solutions, Inc. (DDC Solutions), a San Diego, CA, based company in the U.S. specializing in cooling systems for AI data centers. This acquisition will be conducted through its wholly-owned subsidiary, Daikin Applied Americas Inc. (DAA), headquartered in Minneapolis, MN, U.S.
DDC Solutions is a leader in innovative cooling technologies for AI data centers. This strategic acquisition marks a significant entry for Daikin into the field of AI data center solutions, enhancing its competitiveness in the data center market and paving the way for new business opportunities.
The AI data center market is witnessing rapid growth driven by advancements in digital technology. Data centers have evolved beyond mere "data storage and processing" and now serve as vital infrastructure for AI "learning and inference." Major IT companies are actively constructing dedicated AI data centers in suburban areas. As more companies incorporate AI into their operations and services in the future, there will be trends towards establishing general-purpose inferencing AI data centers in urban areas, escalating the demand for efficient cooling systems in confined spaces.
With its unique cooling technology, DDC Solutions provides server rack-level individual air conditioning, positioning it as an indispensable company in the transformation of the AI data center market. Its solutions efficiently address the challenges associated with increased electricity consumption and heat generation in servers and peripherals resulting from growing data processing demands. Additionally, the company's proprietary equipment management system provides real-time analysis and automatic control of fluctuating power consumption and heat generation at the rack level. By learning operational data for optimal control, DDC solutions offers a comprehensive solution that is pivotal for energy efficiency in data centers.
Through this acquisition, Daikin aims to integrate DDC Solutions’ individual server cooling technologies into DAA's existing portfolio of large-scale commercial air conditioning equipment, instrumentation and controls. This integration enables Daikin to address the comprehensive needs of data centers and contribute to solving customer challenges. Daikin is planning to accelerate its global business expansion starting with the North American market and establish leadership in the AI data center market.
The acquisition is scheduled to be finalized by late August 2025, following completion of necessary procedures. Once the acquisition is concluded, Daikin will provide detailed announcements regarding the acquisition objectives and future developments.
Summary of DDC Solutions
| Company Name | Dynamic Data Centers Solutions, Inc. |
|---|---|
| Headquarters | San Diego, California, U.S. |
| Representative | Keith Markley, CEO |
| Establishment | 2019 |
| Description of Business | Providing total solutions including AI-compatible server rack cooling equipment, instrumentation, and maintenance services. |
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