Daikin expands Mexico plant for data center cooling systems

Japan's Daikin Industries is significantly expanding its manufacturing capabilities in Mexico with plans for a new factory dedicated to producing cooling systems for data centers. This strategic move aims to capitalize on the burgeoning demand for AI infrastructure globally, particularly from hyperscalers in Europe, India, and other emerging markets. The company has invested US$270.2 million in a new Alliance Air Products facility in Tijuana, Baja California, which will enhance the production of high-capacity cooling equipment essential for data centers and industrial HVAC applications.

The expansion underscores Tijuana's growing importance as a hub for advanced manufacturing in North America. The new plant is situated within an industrial park developed by Meor, an affiliate of the Tijuana Economic Development Corporation. This development is expected to increase regional capacity for critical technology infrastructure and energy-intensive facilities.

Since Daikin Group acquired Alliance Air Products in 2023, the workforce at the Tijuana site has seen substantial growth, increasing from 800 to 3,347 employees. Daikin projects this number to exceed 8,000 by 2029, indicating a significant boost in local employment and demand for specialized technical talent in areas such as data centers and advanced manufacturing.

This investment by Daikin is part of a larger trend of private investment in Baja California, which has a projected pipeline of US$1.288 billion for 2026. The state is attracting diverse industrial projects, reinforcing its position as a key manufacturing and export center.