Modine Expands U.S. Chiller Production Capacity to Serve Data Center Customers

Rhea-AI Summary

Modine (NYSE: MOD) has announced a significant expansion of its data center chiller production capacity with a $38 million investment through 2028 at its Grenada, Mississippi facility. The investment will create over 450 new jobs and includes building upgrades, expansion of Airedale by Modine™ chiller product lines, and enhancement of testing facilities.

The expansion strengthens Modine's global manufacturing footprint for data center cooling solutions, complementing existing facilities in Canada, Spain, UK, and a new facility in India. Production at the upgraded Grenada facility is scheduled to begin in summer 2025, with enhanced testing capabilities supporting the company's data center product development alongside its Rockbridge, VA facility.

Positive

• Major $38 million investment demonstrates strong commitment to growth strategy
• Creation of over 450 new jobs indicates significant operational expansion
• Strategic expansion into high-growth data center cooling market
• Global manufacturing presence strengthened with facilities across multiple countries
• Enhanced testing capabilities and product development infrastructure

Negative

• None.

Insights

Financial Analyst

Modine's $38M data center cooling expansion strengthens market position and diversifies revenue with high-growth potential.

Modine's $38 million investment to expand its data center chiller manufacturing capabilities represents a strategically sound capital allocation aimed at capturing growth in the booming data center market. The expansion at Grenada, MS will significantly boost the company's production capacity while creating over 450 jobs through 2028.

This move aligns perfectly with Modine's stated strategy of portfolio evolution toward higher-growth markets. The timing is particularly advantageous given the explosive growth in data center construction driven by AI computing demands, which requires substantial cooling infrastructure. By repurposing an existing facility rather than building new, Modine is likely achieving cost efficiencies while accelerating time-to-market.

The investment strengthens Modine's global manufacturing footprint for its Airedale product line, complementing existing production facilities in Virginia, Canada, Spain, the UK, and soon India. This geographical diversification helps mitigate supply chain risks while positioning the company closer to regional data center hubs.

What's particularly compelling is how this expansion transforms Modine's business mix toward higher-value, mission-critical applications. Data center cooling systems typically command premium pricing and margins due to their reliability requirements and specialized engineering. The expansion directly addresses hyperscale and co-location customers—the fastest-growing segments of the data center market.

With production expected to begin this summer, investors should see revenue contributions beginning in the next few quarters, though the full $38 million investment will be deployed through 2028, suggesting a thoughtfully paced capacity ramp-up aligned with market demand growth.

Investment of $38 million through 2028 at existing Grenada, MS, facility will create more than 450 jobs

RACINE, Wis., May 19, 2025 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, is investing more than $38 million to expand manufacturing capacity for data center chillers. The planned investment through the end of 2028 will upgrade one of Modine's facilities in Grenada, MS, and is expected to create more than 450 jobs.

"Increasing our capacity to manufacture data center cooling equipment is just one example of how we're executing on our strategy to evolve our portfolio for long-term growth," said Neil D. Brinker, Modine President and Chief Executive Officer. "By repurposing the facility to meet demand from hyperscale and co-location data center customers, we're well-positioned to capture opportunities in our strategic growth markets."

Modine operates two facilities in Grenada, MS. The investment at one of the facilities is supporting building upgrades, product line expansion of Airedale by Modine^™ chillers, and enhancements to state-of-the-art testing facilities. The Grenada lab will increase in capacity and, alongside Modine's facility in Rockbridge, VA, grows Modine's dedicated data center product development testing capabilities in the U.S. Chiller production is expected to begin at the facility later this summer.

"We are excited how our Grenada investment adds to our global manufacturing footprint for Airedale by Modine^™ data center cooling solutions," said Eric McGinnis, President, Climate Solutions at Modine. "In addition to the Rockbridge facility, we're already serving data center customers worldwide from facilities in Canada, Spain, and the UK. And, we're looking forward to the first product coming off the lines in the coming months at our new facility in India."

"With Airedale by Modine^™ technologies, global customers have a one-stop shop for mission-critical cooling solutions," said Art Laszlo, Group Vice President, Data Centers at Modine. "Whether it's our high-efficiency chillers, precision cooling units and modular fan walls or our intelligent controls and airflow management systems, we partner with our customers' to solve their most complex thermal management challenges."

About Modine
For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World^™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 11,000 employees worldwide, our Climate Solutions and Performance Technologies segments advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, enable cleaner running vehicles, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit modine.com.

Media Contact:
Kimberly Raduenz, Marketing Manager, North America
Kimberly.E.Raduenz@modine.com

Investor Contact:
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com

Forward-Looking Statements 

This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended March 31, 2024 and under Forward-Looking Statements in Item 7 of Part II of that same report and in the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2024, September 30, 2024, and December 31, 2024. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation, energy costs, government incentive or funding programs, supply chain challenges or supplier constraints, logistical disruptions, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, changes in interest rates, tightening of the credit markets, recession or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the U.S. or abroad, including those related to tax and trade, climate change, public health threats, and military conflicts, including the conflicts in Ukraine and in the Middle East and tensions in the Red Sea; the overall health and pricing focus of our customers; changes or threats to the market growth prospects for our customers; our ability to successfully realize anticipated benefits, including improved profit margins and cash flow, from our strategic initiatives and our application of 80/20 principles across our businesses; our ability to be at the forefront of technological advances and the impacts of any changes in the adoption rate of technologies that we expect to drive sales growth; our ability to accelerate growth organically and through acquisitions and successfully integrate acquired businesses; our ability to successfully exit portions of our business that do not align with our strategic plans; our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses while also completing restructuring activities and realizing benefits thereof; our ability to fund our global liquidity requirements efficiently and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of product or program launches, unexpected volume increases or decreases, product transfers and warranty claims; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; our ability to recruit and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology ("IT") systems; costs and other effects of environmental investigation, remediation or litigation and the increasing emphasis on environmental, social and corporate governance matters; our ability to realize the benefits of deferred tax assets; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any forward-looking statements.

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SOURCE Modine

FAQ

What is the size of Modine's (NYSE: MOD) investment in the Grenada facility expansion?

Modine is investing $38 million through 2028 to expand its Grenada, Mississippi facility for data center chiller production.

How many jobs will Modine's Grenada facility expansion create?

The expansion will create more than 450 new jobs at the Grenada, Mississippi facility.

When will chiller production begin at Modine's expanded Grenada facility?

Chiller production at the expanded Grenada facility is expected to begin in summer 2025.

Where are Modine's global manufacturing facilities for data center cooling solutions located?

Modine operates data center cooling manufacturing facilities in the US (Grenada, MS and Rockbridge, VA), Canada, Spain, UK, and a new facility in India.

What products will Modine manufacture at the expanded Grenada facility?

The facility will manufacture Airedale by Modine™ chillers for data center cooling solutions.