Modine Manufacturing Expands Data Center Cooling Solutions Production with $100 Million Investment
- Modine Manufacturing Company is investing $100 million to expand U.S. production of Airedale data center cooling solutions.
- The expansion will enhance manufacturing and engineering capabilities at four sites, including a new facility near Dallas.
- Modine forecasts data center segment revenue could reach $2 billion by Fiscal 2028, demonstrating strong growth potential.
Modine Manufacturing Company Expands Data Center Cooling Solutions Production
Modine Manufacturing Company, a key player in thermal management technology, is poised to make a transformative investment of $100 million to expand its U.S. manufacturing capacity for Airedale by Modine™ data center cooling solutions. This major initiative is a direct response to soaring demand from hyperscale and colocation data center customers across the United States, highlighting the company's strategic pivot towards high-growth markets. Modine’s President and CEO, Neil D. Brinker, underscores the potential for total revenue from the data center segment to approach $2 billion by Fiscal 2028, indicating a robust future for the company in this burgeoning sector.
The expansion plan involves scaling operations at four existing sites, including a new facility near Dallas, Texas, while also enhancing capabilities in Grenada, Mississippi. Modine is considering the repurposing of its Performance Technologies locations in Franklin, Wisconsin, and Jefferson City, Missouri, to support this growth. This initiative not only aims to increase manufacturing output but also to enhance engineering, product development, and testing capabilities, reinforcing Modine’s commitment to innovation in cooling solutions. Eric McGinnis, President of Modine’s Climate Solutions segment, emphasizes the importance of integrated, modular, and scalable solutions to cater to evolving customer needs, as the company prepares to launch a modular data center platform tailored for key global clients.
With this strategic expansion, Modine positions itself to effectively address the accelerating demands of digital infrastructure in the U.S. market. The investment will not only generate new jobs but also provide opportunities for retraining existing employees, aligning with the company’s commitment to workforce development. As data centers become increasingly critical to the digital economy, Modine's proactive approach in enhancing its manufacturing capabilities ensures that it remains at the forefront of providing high-efficiency cooling solutions, thereby delivering substantial value to both customers and stakeholders.
In addition to this significant investment, Modine continues to report positive financial results, with net sales reaching $682.8 million in the quarter ending June 30, 2025, marking a 3% increase year-over-year. The company has raised its fiscal 2026 guidance, anticipating net sales growth of 10% to 15% and adjusted EBITDA expected between $440 million and $470 million. Despite challenges in the Performance Technologies segment, Modine’s overall trajectory remains strong, driven by strategic investments and a focus on high-growth sectors like Climate Solutions.