Alliance Air Commits $121 Million to New Energy-Efficient Manufacturing Facility

Alliance Air, a subsidiary of Daikin Applied, a leading global commercial and industrial HVAC manufacturer, has initiated the construction of a new energy-efficient manufacturing facility in Tijuana, Mexico to support sustainable data center growth across North America.

The $121 million USD, 460,000 square-foot facility is expected to create over 1,000 production jobs and more than 1,150 total new permanent jobs in the northwest region of Mexico. This investment will bolster Alliance Air and Daikin Applied’s established presence in Tijuana as they aim to support significant data center market growth in Mexico and North America. Construction of the facility is slated for completion by Spring 2025, with production commencing in June 2025.

This expansion allows the company to better serve North American customers with a single supplier for comprehensive HVAC solutions. The new facility builds on Alliance Air’s 20-year legacy in Tijuana, now enhanced by Daikin Industries’ century-long industry leadership.

We started manufacturing in Tijuana 20 years ago with 30 employees. We were just a start-up. I’m proud to see this force of 1,000 team members who have become exceptionally talented in the design and production of energy-efficient, custom cooling solutions,” said Luis Plascencia, President and General Manager of Alliance Air Products. “We look forward to expanding our role in the community and bolstering our partnership with the Baja California government and local Tijuana leaders to make this new facility a reality.

The facility is being constructed to manufacture energy-efficient HVAC cooling solutions specifically for data centers, designed to maximize efficiency and meet the company’s and customers’ sustainability goals.

This is a critical moment for the HVAC industry to meet the demand for data center cooling, which is increasing exponentially with trends and economic forces like artificial intelligence and insourcing manufacturing,” said Yu Nishiwaki, Chief Operating Officer for Daikin Applied Americas. “Increasing our current capacity allows us to expedite delivery to help customers meet this demand. The combined talent and technology of Alliance Air and Daikin Applied create a new level of energy efficiency to help customers meet aggressive sustainability goals.

Prioritizing high-value industries and talent development, a coalition of Baja California’s economic leaders traveled to Japan to meet with Daikin Industries. Baja State Governor Marina del Pilar Ávila Olmeda welcomes this investment, aligning it with her goals for the state: “Baja California emphasizes foreign investment attraction with innovation and well-paid jobs.

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