Commercial and industrial HVAC manufacturer Daikin Applied will invest $121 million to build a new energy-efficient manufacturing facility in Tijuana, Mexico. In partnership with its subsidiary Alliance Air Products — a San Diego-based custom air-handling equipment designer and manufacturer — Daikin Applied is expanding its manufacturing capabilities to support sustainable data center growth across North America. The 460,000-square-foot facility will create more than 1,150 new jobs in the northwest region of Mexico.

Construction of the facility is expected to be complete by spring 2025 with production ramping up in June 2025. It will expand on Daikin Applied and Alliance Air’s established presence in Tijuana, Mexico and manufacture custom HVAC and computer room air handler (CRAH) equipment and solutions specifically for data centers. It is designed for maximum efficiency to meet Daikin Applied’s sustainability goals. The expanded facility allows the company to better serve customers in the west and southwest U.S. and Mexico with a single supplier for end-to-end HVAC solutions.

Daikin Applied MexicoDaikin Applied Mexico
(Photo: Daikin Applied)


“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, Chief Operating Officer for 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.”


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“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,” added 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.”

A coalition of Baja California’s economic leaders recently traveled to Japan to meet with Daikin Industries. “Baja California emphasizes foreign investment attraction with innovation and well-paid jobs,” said Baja State Governor Marina del Pilar Ávila Olmeda.

Check out other stories and news related to economic development, corporate relocation, corporate expansion and site selection in Mexico.

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