Daikin Invests US$270.2 Million in Tijuana, Eyes 8,000 Jobs

Summary: Daikin Group is strengthening its manufacturing presence in Tijuana with a US$270.2 million Alliance Air Products investment focused on high-capacity cooling equipment for data centers and industrial HVAC applications. The expansion has helped increase the company’s local workforce to 3,347 employees, with more than 8,000 jobs projected by 2029, adding momentum to Baja California’s broader US$1.288 billion private investment pipeline for 2026. 

Daikin Group is expanding its industrial footprint in Tijuana, Baja California, with a US$270.2 million investment in a new Alliance Air Products facility designed to increase production of high-capacity cooling equipment for data centers and industrial HVAC applications. The project strengthens Tijuana’s role as an advanced manufacturing hub in North America while adding capacity in sectors tied to the rapid growth of digital infrastructure and specialized industrial facilities.

Alliance Air Products, which became part of Japanese HVAC manufacturer Daikin Group in 2023, has expanded significantly since the acquisition. Its workforce in Tijuana has grown from 800 employees to 3,347, and the company expects to exceed 8,000 jobs at the site by 2029.

The expansion comes as Baja California builds a pipeline of US$1.288 billion in private investment for 2026. The state expects 16 projects across Tijuana, Mexicali and Tecate to generate approximately 15,170 direct jobs, reinforcing its position as one of Mexico’s leading manufacturing and export centers, reported MBN.  

Alliance Air Products Scales Tijuana Operations

The latest expansion represents another step in Alliance Air Products’ effort to increase production capacity while developing specialized manufacturing talent in Baja California. The company’s growth also highlights the increasing importance of HVAC infrastructure for industries that depend on reliable and high-capacity cooling systems.

Under the leadership of Luis Plascencia, President and General Manager of Alliance Air Products, the company is focusing on talent development and deeper integration with the regional supply chain. These priorities are particularly relevant as manufacturers serving data centers and other energy-intensive facilities face growing demand for specialized cooling technologies.

The new facility is located in an industrial park developed by Meor, a company that is part of the Tijuana Economic Development Corporation. Its production will include refrigeration equipment for data centers and industrial HVAC systems, connecting the project to the expansion of digital infrastructure and advanced manufacturing across North America.

The employment outlook is also significant for Tijuana. Growing from 800 workers at the time of Daikin’s acquisition to 3,347 employees represents more than a fourfold increase. Reaching more than 8,000 workers by 2029 would further expand demand for engineering, manufacturing and technical skills in the region. 

Investment Adds Momentum To Baja California

Daikin’s project is part of a broader investment cycle in Baja California, where established manufacturing capabilities, export infrastructure and proximity to the United States continue to support new industrial projects. The state government expects its 2026 investment pipeline to span medical devices, machinery and equipment, electronics, electromobility, precision manufacturing, aerospace and business services.

This diversification gives context to Daikin’s expansion. While the company is adding capacity in HVAC and data center cooling, other investors are strengthening Baja California’s position in high-value manufacturing and North American supply chains.

Medical technology is among the largest segments in the state’s investment pipeline. US-based Intuitive plans to invest US$165 million in Mexicali and create 1,500 direct jobs, while SprintRay plans a US$4 million investment and 70 jobs. Iceland-based Össur is investing US$4 million in Tijuana and expects to create 25 positions focused on medical and mobility solutions, reported MBN. 

Other projects are expanding the region’s industrial base. South Korea’s Dongwon plans to invest US$80 million in Mexicali and create 170 jobs in activities connected to electric vehicles, batteries and mobility technologies. LT Precision Mexicali plans an US$88 million investment and 150 jobs, while Ireland-based Schivo plans to invest US$10 million and generate 200 positions.

Baja California is also attracting aerospace investment. UK-based Doncasters plans a US$15 million project in Mexicali that is expected to create 90 jobs, while Belgium-based Sonaca plans an additional US$15 million investment and 80 positions. 

Digital Investment Drives Demand For Cooling

The expansion of Alliance Air Products comes as data center infrastructure becomes an increasingly important driver of demand for high-capacity cooling and HVAC systems. Facilities supporting digital services require specialized thermal management to maintain equipment performance and operational reliability.

For Tijuana, the opportunity extends beyond the direct employment generated by the Daikin project. Increased production of specialized HVAC equipment can create opportunities for regional suppliers while strengthening the technical manufacturing ecosystem needed to serve complex industrial and technology projects.

Baja California officials have continued to emphasize specialized talent, advanced manufacturing capabilities, export capacity and access to North American and Asian markets as competitive advantages for attracting investment. Those factors also support companies seeking to integrate production into regional supply chains. 

Federal Investment Platform Supports Expansion

The project also has significance beyond its manufacturing and employment impact because Alliance Air Products became the first company, designated as number 001, to use the federal Ventanilla Nacional Digital de Inversiones, or VNDI, framework.

The digital platform is intended to consolidate and facilitate processes associated with investment projects in Mexico. Its use by Alliance Air Products places the Tijuana expansion within a broader effort to streamline the administrative path for investors.

Together, Daikin’s US$270.2 million investment and Baja California’s wider project pipeline point to continued industrial expansion in the state. For Tijuana, the combination of advanced manufacturing, data center infrastructure and a projected workforce of more than 8,000 at Alliance Air Products by 2029 reinforces the city’s role in Mexico’s evolving North American manufacturing landscape.