Modine Data Center Sales Jump 95% as Texas Chiller Production Expands
Key Facts
It could not be verified that Samsung is in talks to acquire cooling-solutions company Modine, or that the aim of any such talks is to strengthen Samsung’s AI infrastructure capabilities. By contrast, Modine’s results published on November 3 showed data center segment sales of $439.7 million in the quarter ended September 30, 2026. Sales rose 95% year over year, compared with $225.0 million in the year-earlier period. The company attributed the increase mainly to higher sales to hyperscale computing customers in North America. Modine’s total sales were $994.4 million, up 35% from a year earlier. Modine said net sales increased $255.5 million, or 35%, year over year.
The segment’s sales growth came alongside pressure on profitability. Data center segment gross margin was 19.7% in the quarter, down 470 basis points from a year earlier. Modine attributed the decline mainly to higher costs for materials, components and tariffs. That puts rapid sales growth alongside the impact of input costs on margins as the company expands capacity to meet data center demand. In May, the company said it would secure cooling-product supply capacity worth more than $4 billion during 2027 to 2029. It received an upfront cash payment of $165 million tied to the supply agreement and capacity commitment.
In a move to expand manufacturing, Modine announced on November 11 the start of commercial production of Airedale chillers at a new facility in Grand Prairie, Texas. The facility covers 682,000 square feet and is dedicated to producing chillers with capacities of 2 and 3 megawatts. The first production line began operating during November, the company said. Modine is targeting operation of four production lines for 2-megawatt chillers by the end of its current fiscal year. Reaching that target depends on preparing the facility, workforce readiness and other operational factors. The facility is part of the company’s expansion in data center cooling products, whose sales grew 95% year over year in the latest quarter.
Samsung’s earlier moves provide context for its presence in cooling and infrastructure. In May 2025, the company announced an agreement to acquire all shares of FläktGroup for 1.5 billion euros, saying the expansion would focus on data center cooling solutions. Samsung estimated at the time that the data center cooling market would grow at an annual rate of 18%. It announced completion of the acquisition in November 2025, with FläktGroup remaining an independent subsidiary that retained its name, management, employees and facilities. In September 2026, six Samsung Group affiliates announced a joint investment of $1 billion in Helix Digital Infrastructure. The group said the investment would enable collaboration in AI infrastructure.
Modine’s next announced event is its investor and analyst day in Chicago on November 18, 2026. The company said the management presentation will begin at 10:00 a.m. Eastern time and include an update on its multiyear growth strategy and new financial targets. The event follows the start of production at the Texas facility during November and the company’s announcement that it is targeting operation of four lines for 2-megawatt chillers by the end of its current fiscal year. The presentation will give management an opportunity to provide details on the growth strategy and financial targets it said it would update. Available information has not independently confirmed acquisition talks involving Modine, while the company’s results and production expansion remain announced facts in this context.