Rolls-Royce has announced a $24 million investment in the United States to more than double production of backup power generation systems for data centers, while creating over 100 new jobs. The funding will establish a new 250,000 sq ft Logistics Operations Centre (LOC) next to the company’s existing manufacturing facility in Mankato, Minnesota. This expansion will boost production capacity for the highly demanded mtu Series 4000 generator sets, critical for the rapidly growing data center sector.
This investment builds on Rolls-Royce’s $1 billion US investment over the past decade. CEO Tufan Erginbilgic emphasized the importance of the US market and the company’s commitment to supporting growth, economic benefits, and job creation.
By 2026, Rolls-Royce expects production at the Minnesota facility to increase by over 120% compared to last year, with the LOC becoming operational in spring and new jobs added over three years.
The mtu Series 4000 engines are built at the Aiken, South Carolina facility, which is also slated for production and staffing increases to meet demand.
Strategic focus
This expansion aligns with Rolls-Royce Power Systems’ strategic aim to grow profitably in power generation. Last year, sales to the data center segment surged by nearly 50%. The US leads globally in hyperscale data centers, hosting more than half worldwide. Anticipated spending on AI data centers and related infrastructure in the US is estimated at $1 trillion over the coming years.
Joerg Stratmann, CEO of Power Systems, highlighted the long-standing partnership with hyperscale data centers and the company’s strategic positioning to meet growing demand, especially in the US.
Facility benefits
The LOC will enhance logistics and assembly capacity for the Mankato plant, which exclusively manufactures power generation systems. It also reinforces safety and quality by enabling climate-controlled operations, vital for handling increased production volumes. Additionally, the LOC provides room for future growth as the energy landscape evolves.
Since acquiring the Mankato business in 2007, Rolls-Royce has consistently invested in the site, including a $13.9 million expansion and a research and development center added in 2021.
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