Modine Manufacturing (NYSE: MOD) announced it has entered into a long-term capacity agreement with a data center customer for more than $4 billion in cooling solutions through 2029. The thermal management company received an upfront cash payment of $165 million to support capacity investments needed to meet the commitment.

Under the agreement, Modine will supply its Airedale data center cooling products to the customer during calendar years 2027 through 2029. The Wisconsin-based company said the arrangement guarantees capacity for the multi-billion dollar sales commitment.

"This landmark agreement is a testament to the successful execution of our long-term strategy to grow our Data Centers business and validates our position as a technology leader," said Neil D. Brinker, President and Chief Executive Officer of Modine.

Art Laszlo, President of Modine's Data Centers segment, said the agreement highlights the strength of the company's Airedale technology and its ability to deliver cooling solutions at scale. The upfront investment will allow the company to expand operations to meet customer demands, according to the company statement.

Modine operates globally with more than 11,000 employees and provides heating, cooling and ventilation solutions across multiple industries. The company is headquartered in Racine, Wisconsin, with operations in North America, South America, Europe and Asia.

The agreement advances Modine's strategic objective of accelerating growth in its Data Centers segment, according to the press release issued by the company.