Racine-based
Modine is cashing in on the United States’ booming data center market. The manufacturer reported a 10% sales increase in the third quarter of fiscal 2025, with a 176% increase in revenue within its data center business.
The growth in data center revenue was driven by “strong organic growth” and the acquisition of Canadian air handling unit manufacturer
Scott Springfield in February, said
Neil Brinker, chief executive officer of Modine.
The company expects data center sales to grow between 110% and 120% this year, which follows 69% growth in 2024.
“We remain confident in our outlook for our data center business. There have been many headlines about improvements in AI modeling and concerns about a potential slowdown in data center construction,” said Brinker during the company’s latest earnings call. “We believe that the increased efficiency in large language modeling may increase the adoption rate for AI technologies and the need for data center infrastructure and could potentially improve the ROI on these investments as processes evolve.”
Modine is working with all hyperscalers (large-scale cloud service providers like Microsoft, Amazon and Google) to some extent, Brinker said. Modine is currently working to establish strong relationships with these companies.
When asked if the recent introduction of Chinese large language model DeepSeek is disrupting any customers’ planned data center investments, Brinker said there's no sign of a slowdown.
“This obviously has come up over the last several weeks,” he said. “We've talked to our customers, and they've assured us this does not change any of their build schedules over the next couple of years.”
Modine is gaining the most market share in North America’s data center market. The manufacturer’s product portfolio and labs across the country make Modine particularly attractive to hyperscalers, Brinker explained.
“Where we didn't compete in the past, we have facilities, factories, labs and products…that ranges from chillers to CRAC (units), to CDUs and our optimizer software,” said Brinker. “That product set, that product portfolio that we've introduced into North America is where we're gaining share.”
Modine has spent the last year bolstering its offerings in the data center market. Last January,
Modine acquired the intellectual property and additional assets of Plano, Texas-based
TMG Core, a manufacturer specializing in liquid immersion cooling technology for data centers.
Last month, Modine announced it will be opening
a second facility in India to keep up with growing demand for its data center cooling solutions.
“We're going to India because our customers have asked us to follow them and where those opportunities are,” said Brinker. “It's not just in India, but it's in Southeast Asia, Malaysia, Singapore, Thailand, all those regions are ripe for growth.”
