MEXICO: Daikin Applied and its subsidiary Alliance Air have broken ground on a new $121m facility in Tijuana to manufacture custom HVAC and computer room air handler equipment and solutions.

The new 460,000ft2 (4274m2) facility is expected to support over 1,000 production jobs and over 1,150 total new permanent jobs.

It will expand on Daikin Applied and Alliance Air’s established presence in Tijuana as the company looks to support significant data centre market growth in Mexico and North America.

Construction of the facility is expected to be complete by spring 2025 with production ramping up in June 2025.

“This is a critical moment for the HVAC industry to meet the demand for data centre cooling which is increasing exponentially with trends and economic forces like artificial intelligence and insourcing manufacturing,” said Yu Nishiwaki, Daikin Applied Americas’ chief operating officer.