Bloomberg: Samsung Electronics in Talks to Acquire US Data Center Cooling Firm Modine
Samsung Electronics is reportedly negotiating to acquire Modine Manufacturing, aiming to expand its footprint in AI data center cooling solutions.
According to Bloomberg, citing sources familiar with the matter, South Korean tech giant Samsung Electronics is in talks to acquire Modine Manufacturing, a US-based producer of data center cooling systems. If completed, this would mark another significant M&A move by Samsung in the AI infrastructure space, following its acquisition of German HVAC firm FläktGroup last year.
Headquartered in Wisconsin, Modine has recently spun off its traditional automotive radiator business to become a "pure-play climate solutions company" focused on the high-growth data center market. With a market cap of approximately $5.6 billion, Modine reported $439.7 million in revenue from its data center segment in the third quarter. As AI chip power consumption surges, efficient thermal management has become a critical bottleneck in data center construction, an area where Modine holds mature technology and capacity.
The report indicates that a deal could be reached within weeks, though no final decision has been made. Both Samsung and Modine declined to comment. Successfully integrating Modine with its existing FläktGroup assets would strengthen Samsung's competitive position in the global AI data center cooling market and intensify rivalry with other HVAC players such as LG Electronics.