AAON, Inc. has recently announced that it was awarded orders from a data center customer totaling approximately $174.5 million. The company will be providing a custom-designed thermal management system to support a liquid cooling deployment for the customer's data centers. This significant order is expected to be mostly produced and delivered in the first half of 2025.
The equipment will be manufactured under AAON's basx brand in their existing and newly constructed facilities at their Longview, Texas location. The construction of the new facility is on schedule to be completed by the end of the year, and the company has already begun staffing, training, and setting up the operations in preparation for production to commence in early 2025.
According to Matt Tobolski, AAON's president and COO, the company's superior engineering and manufacturing capabilities, advanced technology, and expertise in the data center cooling market have been highlighted through these orders. Since the integration of basx into AAON in 2021, the company has strengthened its position as a leader in the rapidly growing market.
Gary Fields, AAON's CEO, emphasized the company's commitment to investing in production capacity to supply the high-growth market. He pointed out that within their current footprint, including the new facility in Texas, they have a considerable amount of excess capacity and are focused on investing in new incremental capacity.
These orders are seen as a fraction of a much larger pipeline of opportunity, reflecting the company's confidence in its data center customer relationships and the underlying fundamentals in the data center market.
AAON, founded in 1988, is a world leader in HVAC solutions for commercial and industrial indoor environments. The company's industry-leading approach to designing and manufacturing highly configurable equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance, and long-term value. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows its engineers to continuously push boundaries and advance the industry. Following these announcements, the company's shares moved 4.1%, and are now trading at a price of $110.58. If you want to know more, read the company's complete 8-K report here.
