Mitsubishi Electric has expanded its European footprint with the acquisition of two Dutch heating, ventilation and air conditioning (HVAC) companies, Deerns and ISSO, in a move aimed squarely at the data centre market. The Japanese industrial giant confirmed the purchases today, 17 July 2026, though financial terms were not disclosed. Both firms specialise in climate control systems for high-density computing environments, a segment that is experiencing rapid growth as cloud computing and artificial intelligence drive demand for new data centres.
The acquisitions come as the UK data centre sector sees record levels of investment. According to industry body TechUK, spending on UK data centre construction rose by 18% in the first half of 2026 compared with the same period last year, with major projects under way in Slough, Hemel Hempstead and the London Docklands. These facilities require sophisticated cooling systems to manage the heat generated by thousands of servers, and Mitsubishi Electric is positioning itself to supply that technology.
Analysts at Investec noted that the deal reflects a broader trend of industrial conglomerates pivoting towards infrastructure linked to digitalisation. “Data centre cooling is no longer an afterthought — it is a critical design element that affects energy costs, reliability and compliance with net-zero targets,” said Sarah Mitchell, senior analyst at Investec. “Mitsubishi Electric is buying niche expertise that would be costly to develop in-house.”
For UK investors and pension holders, the deal highlights a growing opportunity in the HVAC and data centre supply chain. Shares in UK-listed HVAC firms such as BSR Group and Senior plc have risen this year on the back of similar demand. The FTSE 100 closed at 8,342.6 today, up 0.3%, with industrial stocks among the gainers. However, analysts caution that the market remains fragmented and that competition from US and Chinese rivals is intensifying.
The acquisition is subject to regulatory approval from Dutch authorities, which is expected within three months. Mitsubishi Electric said it plans to retain Deerns and ISSO as standalone subsidiaries, preserving their existing management teams and client relationships. The company added that it would invest in expanding their research and development capabilities, particularly in liquid cooling technology, which is becoming increasingly important for next-generation data centres.