Modine has started commercial production of data center chillers at its new 682,000-square-foot manufacturing facility in Grand Prairie, Texas, expanding its manufacturing footprint as demand for cooling equipment grows alongside AI and cloud computing infrastructure.
The company announced the development on November 11, saying the plant is producing 2-megawatt (MW) and 3MW Airedale chillers equipped with free-cooling technology. Its first production line began operating in November, marking the facility’s transition from development to manufacturing.
Modine expects the Grand Prairie plant to become the largest Airedale chiller manufacturing facility in its global operations. However, the company is still working toward its planned production capacity.
Modine plans four production lines
The facility currently operates one production shift. Modine aims to have four 2MW chiller production lines operational by the end of its current fiscal year, followed by a gradual expansion toward three shifts.
The company has not disclosed current production volumes, expected annual output or a detailed commissioning schedule for the remaining lines. Those figures will help establish how much additional cooling equipment the site can supply to data center developers and operators.
Grand Prairie forms part of Modine’s broader North American manufacturing expansion. In July 2025, the company announced a $100 million investment program to increase production and testing capacity across several locations.
$4 billion customer agreement supports expansion
The new plant comes as Modine prepares to meet substantial demand from data center customers.
In May 2026, the company announced a long-term capacity agreement with an unnamed strategic customer, committing to supply more than $4 billion in Airedale data center cooling products during 2027–2029. The customer provided a $165 million upfront payment to support capacity investments and related expenditures.
Modine has not disclosed how much of that agreement will be fulfilled at Grand Prairie. The commitment applies to its wider manufacturing network.
The company’s financial results also illustrate the growth behind the expansion. For the quarter ended September 30, 2026, its Data Centers segment generated $439.7 million in sales, up 95% from the same period a year earlier. Operating income increased 70% to $61.2 million, although gross margin declined to 19.7% from 24.4%.
The results point to strong demand but also highlight the cost pressures Modine faces as it scales production.
Texas facility targets more than 1,000 jobs
The plant is located at 2100 Refuge Way in Grand Prairie. The city previously said the project was expected to create more than 1,000 jobs, with an average annual wage of $66,760. Modine did not provide an updated employment figure in its November 11 announcement.
Public documents offer further detail on the investment. Modine’s application outlined $38 million in planned capital spending over five years, including building improvements, manufacturing equipment and material-handling systems. Grand Prairie separately estimated the broader company investment at approximately $59 million.
The city also approved a performance-based incentive of up to $788,407 over approximately five years, with payments tied to the company’s performance under the agreement.
The next milestones will be commissioning additional production lines, expanding the workforce and increasing operating shifts. Modine has not yet disclosed the plant’s actual output or how its production will be allocated among customers.
Modine’s expansion of data center cooling manufacturing in Grand Prairie, Texas, comes as developers pursue increasingly large AI infrastructure projects that require substantial power and advanced thermal-management systems. One example is STN One’s Project Landman in Odessa, Texas, where the company is developing an AI data center campus with a planned initial deployment of 400MW and a longer-term capacity target of 1.6GW. The project highlights the growing demand for the cooling equipment manufacturers such as Modine are positioning themselves to supply.
Airedale data center chiller manufacturing facility: Project factsheet
- Developer: Modine Manufacturing Company
- Location: 2100 Refuge Way, Grand Prairie, Texas
- Facility size: 682,000 square feet
- Latest development: Commercial production began in November 2026
- Announcement date: November 11, 2026
- Products: 2MW and 3MW chillers with free-cooling technology
- Current operations: One production line and one shift
- Production target: Four 2MW production lines by the end of Modine’s current fiscal year
- Planned capital spending: $38 million over five years
- Broader investment estimate: Approximately $59 million
- City incentive: Up to $788,407, performance-based
- Employment target: More than 1,000 jobs
- Related customer agreement: More than $4 billion in Airedale products for 2027–2029
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