Daikin Applied Strengthens Data Center Cooling with Acquisition of DDC Solutions

Hybrid rack-level technology prepares for next-generation AI and HPC demands.

On August 18, 2025, in Minneapolis, Daikin Applied announced the acquisition of DDC Solutions, a San Diego-based company specializing in advanced cooling systems for data centers. With this move, Daikin expands its portfolio to cover everything from white space cooling to rack-level solutions, positioning itself as a comprehensive provider for the fast-growing data center market.

DDC Solutions is known for its patented autonomous hybrid cooling system, which integrates air cooling and liquid cooling directly within server racks. Unlike traditional plenum-based systems, this design removes heat at the rack level, enhancing efficiency and avoiding costly large-scale infrastructure overhauls. The racks also feature fire and water resistance, noise reduction, and come with integrated infrastructure management software that enables real-time monitoring and automatic adjustments.

Crucially, DDC’s technology can support ultra-high-density workloads such as AI and high-performance computing (HPC), delivering over 1MW of cooling capacity per rack. This breakthrough allows data centers to overcome traditional cooling limitations and meet the demands of next-generation computing.

Following the acquisition, DDC Solutions will continue to operate independently as a Daikin subsidiary, with its current leadership team remaining in place. Keith Markley, CEO of DDC Solutions, commented: “With Daikin’s resources, we can respond to the global data center boom at an even higher level.”

This acquisition underscores Daikin’s strategy to bring its deep expertise in HVAC into the rapidly evolving data center industry. In an age dominated by AI and HPC workloads, cooling is no longer just an efficiency factor—it is a critical enabler of digital infrastructure worldwide.

Keyword Explanations

• Hybrid Cooling System: A system that combines air and liquid cooling inside racks, eliminating the need for expensive infrastructure retrofits while boosting efficiency.
• Rack-Level Cooling: A method of optimizing cooling for each server rack individually, essential for next-generation processors, AI, and HPC workloads.
• Data Center Infrastructure Management Software: A platform that enables real-time monitoring and automated cooling control at the rack level, ensuring energy savings, stability, and risk reduction.

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