Japan's Daikin to Establish India R&D Hub for Data Center Cooling
June 27, 2026
Japan's Daikin to Establish India R&D Hub for Data Center Cooling
Japanese air-conditioning giant Daikin Industries is set to establish a research and development hub in India focused on cooling solutions for data centers, marking a strategic push into one of the fastest-growing digital infrastructure markets in the world. The move underscores the growing importance of specialized thermal management as hyperscale and colocation facilities expand across Asia.
Daikin, a global leader in HVAC systems, will leverage India's engineering talent pool to develop next-generation cooling technologies tailored to the high-density heat loads and energy efficiency demands of modern data centers. The R&D hub is expected to accelerate innovation in liquid cooling, precision air conditioning, and energy-efficient refrigeration cycles, which are becoming critical as data center power densities rise with the adoption of AI and high-performance computing workloads.
The decision comes amid a surge in data center investments in India, driven by surging demand for cloud services, digital payments, and AI applications. Global tech firms and local providers have announced billions of dollars in new capacity, creating a parallel need for advanced cooling infrastructure that can operate reliably in India's diverse climate conditions, from tropical heat to arid zones.
Industry analysts note that cooling systems can account for up to 40% of a data center's total energy consumption. Daikin's targeted R&D efforts could help operators reduce power usage effectiveness (PUE) and meet sustainability targets, a growing priority for both corporate tenants and regulators. The company's existing expertise in variable refrigerant flow and heat pump technologies positions it to address the specific challenges of Indian data centers, including space constraints and grid reliability issues.
By establishing the hub in India, Daikin also aims to tap into the country's rapidly expanding pool of engineers and researchers specializing in thermodynamics and electronics cooling. The initiative is expected to create hundreds of skilled jobs and strengthen the local supply chain for data center components. While Daikin has not disclosed the exact location or investment size, the project represents a significant bet on India as both a manufacturing and innovation base for critical digital infrastructure.
The development highlights a broader trend of Japanese industrial companies pivoting toward the data center ecosystem, recognizing it as a high-growth vertical for cooling and power equipment. As data center construction accelerates across Asia Pacific, Daikin's move could intensify competition among established players and new entrants in the thermal management market.
Source: nikkei
