As Racine-based
Modine continues to see an increase in business driven by construction of data centers, the company plans to invest $100 million to expand capacity for its North American data center business.
Specifically, Modine will invest $100 million over the next 12 to 18 months to expand manufacturing capacity for its Airedale by Modine data center cooling products.
Investments will be made across four manufacturing sites: Franklin, Wisconsin; Dallas, Texas; Grenada, Mississippi; and Jefferson City, Missouri.
"Our investment in U.S. manufacturing for data center cooling advances our strategy to capitalize on our best opportunities in high-growth markets," said
Neil Brinker, Modine's president and CEO. "The U.S. market is driving a significant portion of global data center activity. With the increasing demand for our solutions and this investment in additional manufacturing and testing capacity, we believe that our total data centers revenue can approach $2 billion in our fiscal 2028. We're in an era of enormous growth in digital infrastructure in the U.S. and Modine is committed to growing with demand to deliver value for our customers and shareholders."
The $100 million investment will enhance engineering, product development, and testing capabilities, create new jobs, and support the redeployment and retraining of existing Modine employees.
In May, Modine
reported it highest sales and profitability in company history, largely driven by its data center business.
Modine is seeing so much demand for its data center chillers, the company recently announced plans to
invest $38 million to expand production capacity at its plant in Grenada, Mississippi.
“We’re going to have more than double the (production) capacity that we currently have, once we get Mississippi up and running,” said Brinker during the company's latest earnings call. “We would expect to have a 12-month cycle to get to that point. Some of these things can accelerate. We could potentially move a little bit faster based on hiring, based on equipment coming in early.”
Airedale by Modine offers comprehensive data center cooling solutions, including high-efficiency chillers, indoor air systems, liquid cooling technologies, intelligent controls, and a global service network. Modine also is developing a modular data center platform tailored for global customers.
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