Samsung Electronics is reportedly discussing a potential acquisition of U.S. cooling equipment manufacturer Modine Manufacturing. The talks come as rising artificial intelligence investments increase demand for data center cooling systems. A potential deal could strengthen Samsung’s position in the global data center cooling market. It could also expand the company’s presence in North America’s growing AI infrastructure sector.
According to Bloomberg, Samsung and Modine are discussing a transaction that could reach an agreement within weeks. However, negotiations remain ongoing, and neither company has confirmed a final agreement. Another potential buyer could also enter the discussions, according to people familiar with the matter.
Modine shares jumped approximately 29% in after-hours trading following reports of the potential acquisition. The company had a market capitalization of approximately $5.6 billion at Thursday’s market close.
Modine’s Data Center Revenue Grows 95% as Cooling Demand Rises
Modine’s data center cooling business reported strong revenue growth as demand from hyperscale customers continued to increase. The company generated $439.7 million in data center revenue during the second quarter of fiscal 2027.
This represented a 95% increase from $225 million reported during the same quarter last year. Higher sales to hyperscale customers across North America contributed significantly to the revenue growth. Modine supplies cooling equipment for large data centers operated by major technology companies.
Its product portfolio includes chillers, air handling units and indoor cooling systems that manage server-generated heat. These cooling solutions help maintain stable temperatures as data centers handle growing computing workloads. Modine has also increased its manufacturing capacity to meet rising demand from hyperscale customers.
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Samsung Expands Its AI Data Center Cooling Business
Samsung has expanded its heating, ventilation and air conditioning (HVAC) business through acquisitions and investments in manufacturing facilities. Last year, the company acquired Germany-based FläktGroup for approximately €1.5 billion, strengthening its industrial and data center cooling operations.
The acquisition expanded Samsung’s capabilities in air and liquid cooling technologies for AI data centers. Samsung has also invested in additional manufacturing capacity across India and South Korea to meet rising demand for cooling equipment.
A potential acquisition of Modine could further strengthen Samsung’s presence in North America, a major market for AI infrastructure. The deal could also provide access to Modine’s manufacturing facilities, established customer relationships and advanced data center cooling technologies.
AI Infrastructure Investments Increase Demand for Data Center Cooling
The rapid growth of artificial intelligence is increasing demand for data centers with advanced computing infrastructure. AI workloads require powerful processors that consume large amounts of electricity and generate significant heat during operation.
As a result, cooling systems have become essential for new AI data center investments. Companies are exploring liquid cooling and advanced thermal management solutions to control temperatures and reduce operating costs. These technologies help data centers manage heat while supporting the growing computing demands of artificial intelligence.
Samsung’s potential acquisition of Modine reflects growing industry interest in AI infrastructure and cooling technologies. Major companies, including LG Electronics, Daikin Industries and Vertiv, are also expanding their presence in the data center cooling market.
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Samsung-Modine Acquisition Talks Remain Uncertain
The proposed Samsung-Modine acquisition could become one of Samsung’s largest deals if both companies reach an agreement. However, neither company has confirmed the purchase price or announced any finalized terms for the potential transaction.
Bloomberg reported that the discussions could result in an agreement within weeks, although negotiations may still collapse. The report also leaves open the possibility of another bidder entering the acquisition process. Reuters said it could not independently verify Bloomberg’s report, while Samsung and Modine had not immediately responded to requests for comment.
The potential acquisition highlights growing interest in data center cooling companies as AI infrastructure investments increase. Samsung’s reported interest in Modine could strengthen competition as manufacturers expand their cooling equipment businesses. Major technology companies are looking to secure products and technologies needed for growing AI data center operations.
