Carrier to build $600 million Texas plant for AI data center cooling

what happened

Carrier Global is setting aside more than $600 million for a fresh production site in Fort Worth, Texas. The factory will turn out climate-control hardware for the fast-growing data center sector and other large commercial and industrial properties, according to the Wall Street Journal. It is the largest capital project in the company's history.

Carrier expects data center equipment sales to reach roughly $2 billion this year, which would double that line for a second year running. CEO Dave Gitlin said: "We have significant demand over the next two years, and the hard part is keeping pace. We cannot do that without this facility." Large commercial HVAC sales have been rising about 25% a year.

The plant should more than double commercial chiller capacity compared with the company's existing lines in North Carolina and Mexico, and create 1,500 manufacturing and engineering jobs. The building shell is due to be finished within months, with three or four chiller lines running by late next summer. Carrier competes with Trane Technologies and the York brand of Johnson Controls.

why it matters

For investors this is another sign that AI infrastructure is pulling demand toward cooling equipment makers, not only chip and server suppliers. Carrier expects commercial work to approach 40% of its US climate business this year, which reduces its reliance on the housing cycle.

market impact

Carrier, Trane, Johnson Controls: data center cooling demand supports revenue outlook for HVAC makers

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