News Release

Daikin Applied Announces Plans for New Energy-Efficient Manufacturing Facility to Support Sustainable Data Center Growth in North America


The new facility will expand the company’s custom HVAC manufacturing capabilities to support the growing demand for sustainable data centers and HVAC cooling solutions


Minneapolis, MN - May 8, 2024 - Daikin Applied, a leading global commercial and industrial HVAC manufacturer, today announced plans for the construction of a new energy-efficient manufacturing facility in Tijuana, Mexico. In partnership with its subsidiary Alliance Air Products, the San Diego-based leader in custom air-handling equipment design and manufacturing, Daikin Applied is expanding its manufacturing capabilities to support sustainable data center growth across North America.

The new 460,000 square-foot facility will expand on Daikin Applied and Alliance Air’s established presence in Tijuana, Mexico. The facility is being built to manufacture custom HVAC and computer room air handler (CRAH) equipment and solutions specifically for data centers. It is designed for maximum efficiency to meet Daikin Applied’s sustainability goals and will support the growth of air handler unit sales in North America.

This expanded facility allows the company to better serve customers in the west and southwest United States and Mexico with a single supplier for end-to-end HVAC solutions. 

“This is a critical moment for the HVAC industry not just to increase capacity for data center solutions, but to help data centers increase efficiency and sustainability in their energy use and cooling situations,” said Yu Nishiwaki, Chief Operating Officer for Daikin Applied Americas. “This manufacturing expansion underscores our commitment to help our customers identify sustainability opportunities and achieve, or even surpass, their decarbonization design goals.”

The new $121 million facility is expected to support over 1,000 production jobs and over 1,150 total new permanent jobs in the northwest region of Mexico. Construction of the facility is expected to be complete by Spring 2025 with production ramping up in June 2025.

Prioritizing high value industries and talent development, a coalition of Baja California’s economic leaders traveled to Japan to meet with Daikin Industries. Baja State Governor Marina del Pilar Ávila Olmeda welcomes this investment as it aligns with her goals for the state: “Baja California emphasizes foreign investment attraction with innovation and well-paid jobs.”

Luis Plascencia, president and general manager of Alliance Air Products expanded, “We’ve successfully operated in Tijuana for 20 years and have 986 employees who are exceptionally talented in the design and production of highly customized air handlers. We look forward to building on that success, and bolstering our partnership with the Baja California government and local Tijuana leaders to make this new facility a reality.”

To learn more about the full range of Daikin Applied solutions, and to find a local sales representative, visit Also, follow Daikin Applied on LinkedIn for the latest on commercial HVAC equipment, services and trends. Visit to learn more about Alliance Air Products, and its equipment and services.

About Daikin Applied Americas 
Daikin Applied, a member of Daikin Industries, Ltd., 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 or to locate a Daikin Applied representative, visit or call 800-432-1342.

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Alecia Engelmeyer
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Weber Shandwick
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