Modine has opened a 155,000‑square‑foot manufacturing plant in Franklin, Wisconsin, as part of a $100 million investment to scale production of its Airedale by Modine data‑center cooling solutions. The facility, which began operations on November 17, 2025, is designed to increase output for hyperscalers and colocation providers that demand high‑efficiency cooling for AI‑driven workloads.
The new plant is expected to create more than 300 jobs by March 2026 and will house 430 employees within three years, underscoring Modine’s commitment to meeting the growing demand for data‑center cooling. Wisconsin’s abundant water supply, reliable electricity, and cool climate provide a cost‑effective environment for the plant, aligning with Modine’s strategy to deliver precision cooling solutions in regions that support large‑scale data‑center operations.
Modine’s expansion in Franklin is one of several global investments, including sites in Grand Prairie, Texas; Grenada, Mississippi; Jefferson City, Missouri; and Chennai, India. The $100 million capital allocation reflects the company’s broader plan to capture a larger share of the data‑center market, which is projected to grow over 60% in the Climate Solutions segment in fiscal 2026 and to reach more than $2 billion in data‑center revenue by fiscal 2028.
"We are continuing to invest in our fastest‑growing businesses and are actively advancing the strategy," said President and CEO Neil Brinker. “Our investment in U.S. manufacturing for data‑center cooling advances our strategy to capitalize on our best opportunities in high‑growth markets.” Group Vice President Art Laszlo added, “This facility strengthens our ability to meet growing demand for Airedale by Modine™ products and represents a strategic investment in our future.” John Williams, Group Vice President for Data Centers, Americas, noted the partnership with local authorities: “Franklin’s collaborative spirit and the support from the city and state were instrumental in bringing this facility to life.”
Modine’s focus on data‑center cooling is driven by the explosive growth of AI and high‑density computing, which require more efficient thermal management. The company’s recent earnings reports show a pattern of beating analyst expectations—Q4 2025 EPS of $1.12 versus a consensus of $0.96 and revenue of $647.2 million versus $634.49 million—underscoring disciplined cost control and strong demand. Management’s guidance for fiscal 2026 reflects confidence in continued momentum, with a target of 16‑18% adjusted EBITDA margin and a $2 billion revenue goal for the data‑center segment.
The expansion positions Modine to capture a larger share of a market that is expanding faster than many of its peers. While the company faces headwinds such as supply‑chain complexity and competitive pressure, the tailwinds of AI‑driven demand and the “local‑for‑local” manufacturing strategy provide a robust foundation for sustained growth.
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