Japan's largest air-conditioning manufacturer,Daikin Industries, reported record revenue and profit for the fiscal year ending March 2026, driven by surging demand for data center cooling systems as artificial intelligence infrastructure expands globally.
Revenue rose 5.5% year-on-year to ¥5.015 trillion (approximately US$31.7 billion), while net profit climbed 4.0% to ¥275.2 billion (approximately US$1.74 billion) — both all-time highs. The results are the latest sign that the AI investment wave is lifting industrial companies well beyond the semiconductor sector.
Why Cooling Has Become Critical AI Infrastructure
Daikin attributed a significant share of its growth to rising orders for data center cooling equipment, with the United States standing out as the fastest-growing market. The company also cited steady sales of high-value-added, energy-efficient products as a contributing factor.
The thermal challenge posed by modern AI infrastructure is substantial. High-density GPU server clusters generate far more heat than conventional server rooms, forcing cooling systems to the center of data center design. According to industry data from Japanese telecoms and data center operators, cooling typically accounts for roughly 30% to 40% of total power consumption at a facility — a proportion that is rising as AI workloads intensify.
The AI Supply Chain's Industrial Winners
The broader market has begun reassessing which companies stand to benefit most from the current AI investment cycle. While chipmakers such as Nvidia have dominated investor attention, suppliers of cooling, power management, and thermal control equipment are emerging as significant secondary beneficiaries of AI infrastructure spending.
Daikin, which built its business on refrigerant technology before growing into one of the world's largest HVAC manufacturers, is now accelerating its push into North American and European data center cooling markets. The company has set a target of growing its North American data center cooling revenue to more than ¥300 billion (approximately US$1.9 billion) by 2030, positioning itself to capitalize on AI-driven construction demand.
Supply Chain Diversification as Geopolitical Risks Mount
Daikin also flagged geopolitical uncertainty as an emerging concern, warning that instability in the Middle East could push up logistics and component costs. The company said it is actively diversifying its supply base to reduce exposure to regional disruptions.
The results reflect a broader pattern taking shape across the current technology cycle: AI infrastructure investment is flowing well beyond the chip industry, reviving market interest in established industrial sectors — from power equipment to thermal management — that had long been considered mature and slow-growing. For Daikin, a company once synonymous with household air conditioners, the AI data center has quietly become its most consequential new growth frontier. （Related： AI Fuels $73.2B Semiconductor Materials Record; Taiwan Leads 16th Year ｜ Latest ）
