Modine has signed a long-term capacity agreement with a strategic data center customer for its Airedale by Modine cooling solutions. The agreement covers capacity to supply more than $4 billion of Airedale data center cooling products for sale to the customer during calendar years 2027 through 2029.
Under the agreement, Modine will guarantee capacity for the customer. In connection with the capacity commitment, the company received an upfront cash payment of $165 million to support capacity investments and other expenditures needed to meet its commitments.
Modine said the agreement supports its objective of accelerating growth in its Data Centers segment. The company describes Airedale by Modine as part of its cooling solutions for the data center market.
“This landmark agreement is a testament to the successful execution of our long-term strategy to grow our Data Centers business and validates our position as a technology leader,” said Neil D. Brinker, President and Chief Executive Officer of Modine. “We are focused on providing our key customers with the mission-critical cooling solutions necessary to support the build-out of the digital economy, and this agreement is a perfect example of that commitment in action.”
Art Laszlo, President of Modine's Data Centers segment, said, “Securing this substantial, multi-year agreement with a strategic partner highlights the strength of our Airedale technology and our ability to deliver innovative, reliable cooling solutions at scale. The dedicated capacity and upfront investment will allow us to confidently expand our operations to meet the stringent demands of our customer. This is an exciting opportunity for our business, and we are proud to support our customer's growth trajectory with our advanced Airedale solutions.”
