Rolls-Royce is ramping up its U.S. production capabilities with a significant $24 million investment in Mankato, Minnesota, aimed at addressing the growing global need for reliable backup power in the data centre sector.
This latest investment will more than double the company’s production of mtu Series 4000 generator sets, while also creating over 100 new American jobs. The expansion includes the construction of a new 250,000 square foot Logistics Operations Centre (LOC) adjacent to the existing manufacturing site.
The LOC will serve as an integrated hub for logistics and assembly, specifically designed to meet rising demand from the hyperscale data centre industry. The new facility is expected to be operational by next spring, with job creation extending over the next three years.
“The U.S. market is very important to Rolls-Royce,” said Tufan Erginbilgic, CEO of Rolls-Royce. “Today’s announcement is proof of the transformation of Rolls-Royce in action, enabling us to invest in areas of strategic focus, such as power generation.”
This move reflects the company’s broader commitment to U.S. operations, building on more than $1 billion invested over the last decade. Production at the Mankato facility is forecast to increase by over 120% by 2026, with further growth expected.
Engines for the mtu Series 4000 generator sets are built at the Rolls-Royce facility in Aiken, South Carolina, which will also see increased production and workforce expansion to support rising demand.
Joerg Stratmann, CEO of Power Systems at Rolls-Royce, commented:
“Our hyperscale data centre customers have relied on our solutions for mission-critical power for over 15 years. This deliberate market positioning has enabled us to effectively address the exponential rise in demand, particularly in the U.S., where this critical new infrastructure will be built.”
Sales of power generation products for data centres rose nearly 50% last year, a trend expected to accelerate as the U.S. leads globally in hyperscale infrastructure. Projections estimate up to $1 trillion will be spent on AI-driven data centres and supporting infrastructure in the country over the coming years.
The LOC’s climate-controlled design not only boosts production capacity but also reinforces Rolls-Royce’s safety and quality standards. It sets the stage for future capability as the energy and data sectors continue to converge.
Since acquiring the Mankato operation in 2007, Rolls-Royce has steadily expanded the site, most recently completing a $13.9 million upgrade and adding a research and development centre in 2021.
SOURCE AND IMAGE: ROLLS-ROYCE
