Daikin Applied 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, COO 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.”