Daikin to Acquire U.S.-Based AI Data Center Cooling Firm

Daikin Industries , Ltd. (Daikin) announced on the 6th that it has reached a basic agreement to acquire Dynamic Data Centers Solutions (DDCS), a U.S. company with expertise in cooling systems for AI data centers , through its wholly owned subsidiary, Daikin Applied Americas (DAA). DDCS provides cooling technology for AI data centers . This acquisition marks Daikin’s full-scale entry into AI data center solutions, strengthening its competitiveness in the data center market and paving the way for new business expansion.

Daikin explained that while major IT companies currently build AI-dedicated data centers in suburban areas, many companies will increasingly incorporate AI into their operations and services, leading to a trend toward locating general-purpose inference-based AI data centers in urban areas. This will drive demand for efficient cooling systems in limited space. DDCS’s unique cooling technology for individual server rack-level air conditioning efficiently addresses the increased power consumption and heat generated by servers and peripheral devices due to increased data processing volumes. In addition, the company’s proprietary facility management system analyzes and automatically controls fluctuations in power consumption and heat generation by rack in real time, and performs optimal control by learning operational data, providing a total solution for energy conservation in data centers.

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Daikin explained that this acquisition will allow it to incorporate DDCS’s individual server cooling technology, in addition to DAA’s existing strengths in cooling data center spaces by combining large-scale commercial air conditioning equipment, instrumentation, and control, thereby meeting the comprehensive needs of data centers and contributing to solving customer issues. Starting with the North American market, Daikin aims to accelerate global business expansion and establish leadership in the AI data center market. The acquisition is scheduled to be completed in late August 2025, following the completion of necessary procedures. Daikin also plans to announce details of the acquisition, including its objectives and future developments, once the closing is complete.

SOURCE: Yahoo