MINNEAPOLIS — In partnership with its subsidiary Alliance Air Products, Daikin Applied is expanding its manufacturing capacity to support sustainable data-center growth across North America.

The company is planning to build a new energy-efficient factory in Tijuana, Mexico, for the production of custom HVAC and computer-room air-handler products specifically for data centers.

The 460,000 square-foot facility will expand on Daikin Applied and Alliance Air’s presence in Tijuana, a Daikin Applied press release said. The factory is designed for maximum efficiency in order to meet Daikin Applied’s sustainability goals, the company said.

The new facility will allow the company to better serve customers in the West and Southwest United States and Mexico as a single supplier of 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 at 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 more than 1,000 production jobs and more than 1,150 total new permanent jobs in the northwest Mexico. Construction is expected to be completed by the spring of 2025, with production ramping up in June 2025, the company said.

Prioritizing high-value industries and talent development, a coalition of economic leaders from the Mexican state of Baja California, where Tijuana is located, recently traveled to Japan to meet with Daikin Industries. Baja California Gov. Marina del Pilar Ávila Olmeda welcomed Daikin’s investment, as it aligns with her goals for the state, the Daikin press release said.

“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,” said Luis Plascencia, president and general manager of Alliance Air Products. “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.”