Racine-based Modine announced that it has entered into a $4 billion long-term capacity agreement with a data center customer to supply its subsidiary Airedale’s cooling solutions, according to BizTimes Milwaukee.
The agreement mandates that Modine supply more than $4 billion of Airedale data center cooling products from 2027 to 2029. The company received a $165 million up-front cash payment at the time the deal was made, according to a press release.
The LTA “advances Modine’s strategic objective of accelerating growth in its data centers segment and reflects the collaborative approach Modine takes with key customers,” the release said.
News of the agreement comes months after Modine announced the opening of its new 153,000-square-foot plant in Franklin. The plant serves as an Airedale manufacturing facility, making products including high-efficiency chillers, indoor air systems, liquid cooling technologies and intelligent controls. When its opening was announced, the company said the new plant would create more than 300 new jobs by March this year. Approximately 420 employees are expected to work at the facility within three years, an increase from an initial Modine announcement.
