Daikin Applied Acquires DDC Solutions to Expand Data Center Cooling Portfolio

MINNEAPOLIS — Daikin Applied announced it has entered into a definitive agreement to acquire DDC Solutions, a San Diego-based developer of ultra-high-density cooling cabinets and management software for data centers. This deal is subject to customary closing conditions, including the receipt of regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is expected to close by month’s end.  

The acquisition will expand Daikin Applied’s data center-focused portfolio — adding in-room, rack-level solutions for white space cooling, and underscoring the company’s commitment to providing complete data center cooling solutions.  

“The demand for high-performance data centers is accelerating and the equipment inside those data centers is evolving rapidly”, said Yu Nishiwaki, COO for Daikin Applied. “This acquisition allows us to deliver a rack-level cooling platform that is resilient, flexible and scalable, and able to support current and next-generation chip sets.” 

“As the world’s leading air-conditioning company, nobody knows cooling better than Daikin,” said James Moe, executive vice president of sales, service and solutions at Daikin Applied. “We’ve applied that expertise to data centers in the form of HVAC technologies that span from large-tonnage chillers to in-room air handlers. And now we’re going further into the computer room to provide an even broader array of cooling solutions.”     

DDC Solutions offers a patented, self-contained hybrid cooling system that integrates air and liquid cooling directly within the data center racks. Unlike traditional air-cooled or plenum-based systems, this design contains heat removal within the rack itself, which improves operational efficiency and eliminates the need for costly infrastructure modifications. In addition, the cabinets provide excellent fire and water protection and significantly reduce the data center's acoustic signature. They also come equipped with data center infrastructure management software for real-time monitoring and automated cooling adjustment on a per cabinet basis. 

“The ability to scale quickly across geographies with Daikin’s resources is a game changer”, said Keith Markley, CEO of DDC Solutions. “The global demand for data center solutions is expanding so quickly and being part of Daikin Applied will allow us to respond to this demand at an even greater level of excellence than before.”

After the closing, DDC Solutions will operate as a subsidiary of Daikin Applied with the full DDC Solutions leadership team remaining in their current roles.

Lincoln International served as the exclusive financial advisor to DDC Solutions and its shareholders.

For additional details on Daikin Applied and its full range of commercial and industrial HVAC equipment and solutions, connect to www.daikinapplied.com.