Shares of Modine (NYSE:MOD) jumped 14% on Tuesday after the company announced a $4 billion Long-Term Capacity Agreement tied to its Airedale by Modine data centre cooling solutions.
Agreement guarantees large-scale cooling supply through 2029
Under the deal, Modine will reserve manufacturing capacity to provide more than $4 billion worth of Airedale cooling products to a strategic data centre customer between calendar years 2027 and 2029.
The company also received an upfront cash payment of $165 million, which will be used to fund capacity expansion and other investments needed to support the agreement.
Deal supports growth strategy in data centre market
Modine said the agreement represents a major step forward in its strategy to expand its Data Centers business segment.
The company added that the arrangement reflects its collaborative partnerships with key hyperscale and infrastructure customers operating in the rapidly growing data centre industry.
CEO says agreement validates Modine’s market position
“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 Brinker, President and Chief Executive Officer of Modine.
Airedale platform highlighted as key competitive advantage
Art Laszlo, President of Modine’s Data Centers segment, said the multi-year contract demonstrates the strength of the company’s Airedale cooling technology and its ability to deliver solutions at large scale.
He added that the upfront investment will help the company expand operational capacity to meet rising customer demand.
Company continues focus on advanced cooling technologies
Based in Wisconsin, Modine specializes in thermal management technologies and has increasingly focused on advanced cooling systems for high-performance data centre infrastructure.