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Modine expands data center cooling capacity and updates revenue targets amid record hyperscaler orders
Tuesday, February 10, 2026 at 03:57 PM
Modine reports rapid scaling in its data center business, with revenue growing 78% YoY and projections updated to $2 billion by FY2028. The company commissioned four new chiller lines in Q3 with four more expected in Q4, targeting a total of 20 lines by FY2028. Capacity expansion is supported by $100 million in remaining CapEx. Modine is also engaging in long-term supply agreement discussions with hyperscalers as order visibility extends to a five-year horizon.
Context
Modine is rapidly scaling its data center cooling business, reporting a 78% year-over-year sales surge in fiscal Q3 2026. Driven by record AI-related orders, the company expects segment revenue to top $1 billion this fiscal year and has raised its annual growth targets to 50-70% through 2028. This momentum provides visibility as far as five years out, allowing Modine to comfortably raise its FY28 data center revenue target beyond $2 billion.
To meet intense hyperscaler demand, Modine is deploying $100 million in remaining capital to reach 20 active chiller lines by FY28, with eight lines launching across Q3 and Q4. The company is also divesting its $1 billion Performance Technologies segment to focus exclusively on high-margin thermal management. Management is now securing long-term supply agreements with major cloud providers, leveraging a flexible manufacturing model that supports modular units, advanced air handling systems, and liquid cooling.
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