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Daikin Applied to acquire DDC Solutions, expanding data center cooling and rack-level solutions portfolio

Daikin Applied has announced a definitive agreement to acquire DDC Solutions, a San Diego-based developer of ultra-high-density cooling cabinets and management software focused on data centers. The transaction is subject to customary closing conditions and regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, with closing expected by the end of this month.

With this acquisition, Daikin Applied reports it will expand its data center cooling portfolio to include in-room and rack-level solutions specifically tailored for white space cooling in data centers. According to Daikin Applied, “This acquisition allows us to deliver a rack-level cooling platform that is resilient, flexible and scalable, and able to support current and next-generation chip sets,” said Yu Nishiwaki, Chief Operating Officer.

DDC Solutions provides a patented, self-contained hybrid cooling system integrating both air and liquid cooling directly at the rack. Daikin Applied notes that, unlike traditional plenum-based or air-cooled approaches, DDC’s cooling platform contains heat removal within the rack, improving operational efficiency and eliminating the need for substantial infrastructure modifications. These cabinets are designed to provide fire and water protection, reduce the acoustic profile of the data center, and come equipped with real-time monitoring and automated per-cabinet cooling adjustment software.

The company states its S-Series v4 cabinet technology supports up to 100 kW with air cooling and is liquid-to-the-chip ready for densities exceeding 1 MW per cabinet. DDC Solutions targets workloads running traditional workloads, artificial intelligence (AI), and high-performance computing (HPC) that require ultra-high-density cooling. The management software platform offers dynamic infrastructure control tailored to the needs of modern data centers.

Following closing, DDC Solutions will operate as a subsidiary of Daikin Applied with leadership continuity. Lincoln International acted as exclusive financial advisor to DDC Solutions for this transaction.

Source: Daikin Applied

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