Rolls-Royce announced a $24 million investment in its U.S. operations, aiming to more than double production of backup power systems for data centers and add over 100 new jobs.
The funding will support a new 250,000-square-foot Logistics Operations Center (LOC) in Mankato, Minnesota, adjacent to the company’s existing factory. The expansion will boost output of mtu Series 4000 generator sets, which are in high demand from the booming data center industry.
Strengthening U.S. Presence
This move builds on Rolls-Royce’s $1 billion+ U.S. investments over the past decade. CEO Tufan Erginbilgic emphasized the company’s commitment to growth in America:
“The U.S. market is critical for Rolls-Royce. We’re proud of our history here and are expanding to drive economic benefits and job creation. This investment reflects our strategic transformation.”
The Mankato facility’s production capacity is expected to surge 120% by 2026, with the LOC set to open next spring. Hiring will ramp up over the next three years.
Meeting Surging Data Center Demand
The generator sets use mtu Series 4000 engines, produced in Aiken, South Carolina. The Aiken plant will also scale up production, requiring more workers to meet demand.
The investment aligns with Rolls-Royce’s push to grow its Power Systems division. Last year, data center-related power system sales jumped nearly 50%. The U.S. dominates the sector, housing over half of the world’s hyperscale data centers. Analysts project $1 trillion will be spent on AI data centers and infrastructure in the coming years.
Joerg Stratmann, CEO of Rolls-Royce Power Systems, said:
*“For 15 years, hyperscale data centers have trusted our mission-critical power solutions. This expansion ensures we meet skyrocketing demand, especially in the U.S., where most new infrastructure is being built.”*
Boosting Efficiency and Safety
The new LOC will streamline logistics and assembly for the Mankato plant, which specializes in power generation systems. The climate-controlled facility will maintain safety standards despite higher production volumes.
Since acquiring the business in 2007, Rolls-Royce has steadily invested in Mankato, including a $13.9 million factory expansion and a new R&D center in 2021.
This latest move reinforces the company’s focus on next-generation energy solutions as global power needs evolve.
