Modine Announces New $100 Million Investment to Expand Capacity for North American Data Centers Business

Expansion plan includes new manufacturing facilities and increased production capacity for critical equipment supporting Airedale by Modine™ total data center cooling solutions, in response to unprecedented demand from U.S. hyperscale and colocation data center customers

RACINE, Wis., July 29, 2025 /PRNewswire/ -- Modine (NYSE:MOD), a diversified global leader in thermal management technology and solutions, today announced a multimillion-dollar investment to expand U.S. manufacturing capacity for Airedale by Modine™ data center cooling products. This strategic investment reinforces Modine's commitment and ability to serve the U.S. data center market and the company's century-long leadership and expertise in precision-engineered cooling solutions for mission-critical operations.

"Our investment in U.S. manufacturing for data center cooling advances our strategy to capitalize on our best opportunities in high-growth markets," said Neil D. Brinker, Modine President and CEO. "The U.S. market is driving a significant portion of global data center activity. With the increasing demand for our solutions and this investment in additional manufacturing and testing capacity, we believe that our total data centers revenue can approach $2 billion in our Fiscal 2028. We're in an era of enormous growth in digital infrastructure in the U.S. and Modine is committed to growing with demand to deliver value for our customers and shareholders."

The $100 million investment over the next 12-18 months will expand manufacturing at four sites to support data center growth, including a new facility in the Dallas, TX, area, expansion in Grenada, MS, and considering repurposing existing Performance Technologies' sites in Franklin, WI, and Jefferson City, MO. The investment also will enhance engineering, product development, and testing capabilities, create new jobs, and support the redeployment and retraining of existing Modine employees.

"Our customers need more than just products—they need a partner who can deliver the latest technologies, along with integrated, modular, and scalable solutions and service," said Eric McGinnis, President of Modine's Climate Solutions segment. "This multimillion-dollar investment advances our local-for-local strategy to expand capacity in the regions where we are seeing the greatest demand. This expansion allows us to continue serving hyperscale and colocation data center customers, where we maintain a growing pipeline."

Airedale by Modine delivers comprehensive data center cooling solutions, including high-efficiency chillers, advanced indoor air systems, next-generation liquid cooling technologies, intelligent controls, and a global service network. To meet the increasing demand for rapid deployment and scalable infrastructure, Modine also is developing a modular data center platform tailored for key global customers.

"As the demand for data grows—driven by AI and high-density computing—Modine is expanding its capabilities to support the global growth of data centers," said Art Laszlo, Group Vice President, Global Data Centers, at Modine. "We're investing in scalable, integrated cooling solutions that meet the changing needs of hyperscale and colocation operators around the world."

For more images and additional information please visit the Airedale by Modine Media Kit. Information about Airedale by Modine's full suite of data center cooling solutions is available at https://www.airedale.com/.

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.

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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, 2025 and under Forward-Looking Statements in Item 7 of Part II of that same report. 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 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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