Daikin US Corporation is the American subsidiary of Daikin Industries, Ltd., a global provider of air conditioning, heating, ventilation and air filtration systems. The company develops and sells HVAC technologies for residential, commercial and industrial applications throughout the U.S. market.
At this year's New York Climate Week you spoke prominently about the future of energy and efficiency. Why is it important for companies like Daikin to be part of this conversation?
Daikin is a leading global HVAC manufacturer and our products are available in more than 170 countries. When you combine this scale with our 100-year brand heritage, you can see the impact our decisions have on big issues like energy resilience and decarbonization of buildings. At Daikin, our focus is on the dual impact of our products: providing convenience and value while protecting the environment and strengthening energy security. With the advent of data centers, electric vehicles and growing digital demands, the power grid is under increasing pressure. Energy efficiency is no longer just about emissions – it's about ensuring sufficient supply for all while supporting better affordability.
The message was about energy security, grid reliability and sustainability. Promoting efficient technologies benefits the user, the environment and the network itself. We used to talk about the “duck curve,” which shows summer peaks in energy consumption. But with year-round demand from heat pumps, electric vehicles and data centers, the curve could flatten to a more constant load. Utilities will need to rethink pricing and management over the next 10 to 20 years. Responding to demand will be important – coordinating devices such as inverter heat pumps and smart controls so that homes and buildings can reduce load during peak periods while maintaining comfort.
Rising temperatures and changing lifestyles are changing the way people think about comfort. In your opinion, which factors most influence the need for cooling, heating and air filtration today compared to previous decades?
Quite simply: as the weather becomes more extreme, the need for heating and cooling increases. When thinking about cooling, the history of air conditioning in the United States goes back to large parts of the Southwest and West that were uninhabitable. Living and working in temperatures over 100 degrees was very difficult. That changed many years ago, but now we see the same trend in different parts of Asia – India, Southeast Asia – where development is accelerating and cooling needs are becoming more important. On the one hand, it is positive because it improves people's lives and provides safety in high temperatures, which are worsening due to climate change.
But it also has consequences. More energy demand means more power plants, which leads to indirect emissions because our products come from the grid. There are also direct emissions from the refrigerants. If handled properly, refrigerants do not escape, but if they do, they are very powerful greenhouse gases. On the warming side, the trend is important but less dramatic than the cooling; In the United States, the focus has shifted from fossil fuel combustion systems to electric heat pump technology. Given our global footprint, we often see these patterns. The good news is that the technologies that can help limit the impacts of climate change and strengthen energy resilience already exist – we just need to deploy them widely.
Daikin highlights three core technologies that make systems more efficient and climate-friendly. Can you explain how heat pumps, inverters and refrigerants contribute in this regard?
Looking at indirect emissions related to energy consumption, our two main technologies are heat pumps and inverters. A heat pump is essentially an air conditioning system that works in reverse: Instead of drawing heat from inside and releasing it outside, it extracts latent heat from the outside air – even at temperatures below freezing – and transfers it inside. The additional capacity allows cold climate heat pumps to be used in countries such as Canada, Sweden and near the Arctic Circle, reducing electricity consumption for heating by up to 75 percent compared to electrical resistance systems.
The second technology is the inverter or variable speed compressor. Traditional U.S. systems typically operate at one speed, cycle on and off repeatedly, and waste energy, like hitting the accelerator and brake in a car. Inverters run at multiple speeds, adapting to conditions, maintaining more consistent indoor temperatures, improving efficiency, and even interacting with the grid. Because of how they work, the units can be smaller and use fewer materials such as copper. Think of it like adaptive cruise control for buildings: precise temperature control, effective humidity management and quiet operation.
The third part is refrigerant technology, which deals with direct emissions. The refrigerant is the blood of the system and enables heat exchange. However, many conventional options are potent greenhouse gases. In the 1970s, CFCs were banned under the Montreal Protocol due to ozone depletion. They have been replaced by HFCs, which do not harm ozone but have strong global warming effects that last for hundreds of years. At Daikin, we promoted the refrigerant R-32, a practical and widely available option that has a much lower global warming potential – around 675, compared to CFCs, which reached up to 20,000. Today, more than 50 companies have adopted R-32 in over 280 million systems worldwide, including our ductless mini-splits, air conditioners, heat pumps, and variable refrigerant volume (VRV) products, with some models capable of operating down to approximately -13°F.
Daikin links all of these technologies with advanced building management systems to help respond to demand, which can reduce the load on the network during peak periods.
AI and the rapid growth of data centers are placing new pressures on energy demand. How fast is this market growing and what challenges does it pose for energy suppliers and technology providers?
It is very significant. Utilities are finding that data centers have a huge impact on their operations. With AI, these centers will need to become even larger than before, and demand is growing quickly. The issue of grid reliability and security is becoming more pressing – utilities fear outages and power outages, which were once a problem during the summer cooling season but can now occur in the winter as well. That's why our U.S. Daikin Applied Americas business focuses on sustainable, high-efficiency data center cooling technologies to reduce consumption while maintaining uptime and reliability.
If decarbonization succeeds, more electric heat pumps will also be added. One of our core technologies, the variable speed compressor, can communicate with utilities. You can send a signal to shut down by 20 to 30 percent, and the compressor can respond without shutting down the system completely. This demand response helps stabilize the grid while providing safe heating or cooling.
When it comes to promoting energy efficiency, Daikin is active in both new construction and the renovation of older buildings. How do the two compare?
For new construction, it's certainly easier if you can design a home or building around HVAC systems. For new buildings you can plan according to the most efficient system, for retrofits you adapt to the existing structure.
However, Daikin is very active in building retrofits that focus on improving energy efficiency and performance. This includes upgrading commercial HVAC systems with technologies such as variable refrigerant volume (VRV) systems and high-efficiency chillers, as well as integrating intelligent controls. As a residential example, in 2024 we converted twelve units in a complex in Houston from electric resistance heating to heat pumps, resulting in a 57 percent reduction in energy use and cost savings. Whether new construction or renovation, modernization with highly efficient heating, cooling and ventilation solutions makes a significant difference.
Financial incentives receive a lot of attention, but are only one piece of the puzzle. What changes are most urgent to accelerate adoption of these technologies?
Incentives are important. We've seen federal tax credits in the past, but more often incentives come from states and utilities. Energy suppliers in particular support efficient heat pumps because helping a homeowner install one reduces the burden on the power grid in the long run. They may invest in installation assistance as it will benefit them over time.
But beyond financial tools, training and awareness are critical. Installers need to understand the technology and be able to confidently recommend it. In the US, homeowners do not buy directly from Daikin, but rather through contractors who buy from dealers. What the contractor presents at the “kitchen table” is usually what the customer chooses. Models are also emerging at the state level – for example, Massachusetts is implementing electricity rates for heat pumps through major utilities, with typical households expected to save about $540 in the winter. In California, we partner with the California Heat Pump Partnership, supporting the goal of 6 million heat pumps by 2030, with Daikin pledging to produce 1 million in the US
Most homeowners don't think about HVAC until a system fails, often opting for whatever the contractor has on hand. What is the real barrier to scaling efficient technologies in the US – cost, awareness, or something else?
It's a mix. Cost is always a factor, but consumer awareness is huge. Typically, air conditioners are purchased in an emergency when the system fails. They call a contractor to offer them what they have in stock, and that decision is made quickly and under pressure, unlike buying a car or a new refrigerator.
For this reason, contractors must be trained and able to recommend efficient technologies. Incentives are also important because systems can be expensive. On our site, we support education with ROI and lifecycle tools, funding assistance, and access to incentives.
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