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Dive Brief:
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Rolls-Royce will invest $75 million to expand its Aiken, South Carolina, engine plant, in an effort to meet surging data center demand driven by the artificial intelligence boom, the U.K.-based company said Tuesday.
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The project will increase production volume for the company’s large Series 4000 engines, which can generate power for data centers, hospitals, locomotives, superyachts and other applications. Construction is set to begin in the first quarter of 2026.
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The 60,000-square-foot expansion allows Rolls-Royce to manufacture more of its engine components in the United States, rather than rely on parts from Germany, according to a news release. The project will add 60 jobs to the Aiken facility, with expanded production slated to be ready by July 2027.
Dive Insight:
Rolls-Royce, not to be confused with the luxury car brand, is one of the world’s largest manufacturers of engines for civil aerospace and military aircraft and ships, according to its website. It also has a power systems division, based in Friedrichshafen, Germany, that is responsible for engine, propulsion and battery storage systems.
As demand for infrastructure that supports AI surges, Rolls-Royce said its data center-related sales jumped 50% last year. The company is looking to build on that momentum with its recent U.S. investments. Rolls-Royce is expecting as much as $1 trillion to be spent on AI data centers over the next few years.
In recent months, manufacturers have pledged to invest heavily in the space. Jabil recently picked North Carolina for a $500 million facility focused on liquid cooling and thermal solutions for data centers. Meanwhile, Schneider Electric is spending $700 million to expand and upgrade its U.S. facilities to support growing sector demand. According to the Electric Power Research Insitute, data center electricity demand could double across the nation by 2030.
“We are proud to support America’s growing demand for reliable, domestically made energy systems that strengthen our nation’s energy independence and security,” Adam Riddle, CEO of Rolls-Royce North America, said in a statement.
Last month, Rolls-Royce announced a $24 million investment to expand its Mankato, Minnesota, facility, to more than double its production of data center backup power generation systems.
“By increasing our machining capabilities in Aiken, we can supply more engines to Mankato, enabling us to deliver more gensets with shorter lead times,” Adam Wood, managing director for Rolls-Royce’s power systems division in America, said in a statement.
Story ContinuesThe Aiken expansion is expected to be done in two phases. The first phase will grow the existing facility by 37,000 square feet, according to the release. There are also plans to add an extra 22,000 square feet of manufacturing space.
South Carolina’s Coordinating Council for Economic Development approved job development credits for the project.
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