Munters expands data center capacity with US joint venture and Italian expansion

what happened

Sweden's Munters Group has signed an agreement with Lordan, a maker of high-quality fin and tube heat exchangers, to set up a joint venture for coil manufacturing in the United States. Munters will invest 9.5 million US dollars (about 90 million Swedish kronor) and hold 45% of the venture, while Lordan keeps the remaining 55%. The plant will be built near Munters Data Center Technologies' facility in Selma, Texas, with production expected to start in 12 to 18 months.

The seven-year agreement includes commitments from both parties to produce and buy a set quantity of coils at agreed lead times and prices. Lordan will run day-to-day operations, while Munters supplies supply chain and staffing resources. Separately, the company is acquiring an adjoining site in northern Italy, where it will develop new chiller production lines, R&D capabilities and testing facilities over the coming year. The total investment there is estimated at around 25 million euros.

why it matters

The deal concerns one company, but it reflects a broader trend: makers of data center cooling equipment are adding capacity and securing components in advance. Demand for these systems is rising alongside data center construction, so supply reliability and lead times matter to the sector. The investment is modest in scale and is unlikely to move the broader market.

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instruments