Rolls-Royce Expands South Carolina Operations with $75M Investment to Meet Surging U.S. Demand
Rolls-Royce has announced a significant expansion of its U.S. manufacturing capabilities with a new $75 million investment in its mtu engine production facility located in Aiken, South Carolina. This move aims to enhance the company’s machining capacity for its mtu Series 4000 engines, reflecting the increasing demand for reliable, high-powered backup generators, especially from the booming American data center sector.
This latest investment will expand the Aiken plant’s physical footprint and create an estimated 60 new jobs, bringing the total number of full-time employees at the facility to 434. The South Carolina Coordinating Council for Economic Development has approved job development credits to support this expansion, signifying the project’s importance to the local economy and workforce development in the region.
Expanding U.S. Footprint
The announcement follows closely on the heels of another major investment by Rolls-Royce earlier this year—a $24 million expansion at its Mankato, Minnesota facility, which added 100 new jobs to the company’s Power Systems division in the U.S. Collectively, these investments reflect the company’s commitment to bolstering domestic manufacturing and addressing rising energy needs across critical infrastructure sectors.
“The increased investment strengthens our ability to serve our U.S. customers – especially in the fast-growing American data center industry,” said Adam Wood, Managing Director for Rolls-Royce’s Power Systems division in America. “By increasing our machining capabilities in Aiken, we can supply more engines to Mankato, enabling us to deliver more gensets with shorter lead times. These investments reflect our commitment to supporting U.S. customers with reliable, locally produced solutions.”
Supporting Data Centers and Critical Infrastructure
Rolls-Royce’s mtu Series 4000 engines, produced at the Aiken facility, are the core of its power generation systems and serve as mission-critical backup for data centers, hospitals, municipalities, and federal installations. Once assembled, the engines are shipped to the company’s Mankato facility, where they are integrated into complete generator sets.
This surge in production capacity comes at a time when the demand for backup generators is growing rapidly. Over the past decade, the company has seen a significant increase in interest for high-power, mission-critical solutions—particularly from data centers, which now account for a large share of global energy consumption. With more than half of the world’s hyperscale data centers located in the U.S., the country is a key growth market for Rolls-Royce’s power solutions.
Adam Riddle, CEO of Rolls-Royce North America, emphasized the strategic importance of the expansion: “Today’s announcement underscores Rolls-Royce’s commitment to the U.S. market and demonstrates our robust manufacturing capabilities. We are proud to support America’s growing demand for reliable, domestically made energy systems that strengthen our nation’s energy independence and security.”
According to the company, sales of power generation products for the data center segment alone surged by nearly 50% last year. With global spending on AI-focused data centers and associated infrastructure expected to exceed $1 trillion over the next few years, Rolls-Royce’s strategic investments position it well to capture a significant portion of this growing market.
Expansion Timeline and Phases
The facility expansion in Aiken will unfold in two phases. The first phase will increase the site’s manufacturing footprint by 37,000 square feet. A second phase, pending future approvals and demand, could add another 22,000 square feet—bringing the total potential expansion to 60,000 square feet. Construction on Phase 1 is expected to begin in the first quarter of 2026, with production scheduled to commence by July 2027.
The investment also involves reshoring critical machining processes that were previously conducted in Germany. With this development, more components of the mtu Series 4000 engines will be machined domestically, improving supply chain efficiency and reducing lead times for U.S. customers.
Innovation and Workforce Development at Aiken
Since launching operations in 2010, the Aiken campus has grown into a model of advanced manufacturing. It now spans 395,000 square feet and includes state-of-the-art production capabilities, an engine testing facility, a research and development center, four large engine test stands, and a remanufacturing and overhaul center.
In keeping with Rolls-Royce’s commitment to sustainability, the site also boasts a 1.35 MW ground-mounted solar array installed in 2017, covering 7 acres. Additionally, the plant features a microgrid system powered by solar panels installed over its covered parking area, which supplies clean energy for the administration building.
In a pioneering move for workforce development, the Aiken facility launched a nationally recognized High School Apprenticeship Program in 2012, the first of its kind in South Carolina. Modeled after Germany’s dual-education system, the program has trained more than 70 students and prepares high schoolers for careers in manufacturing. Graduates receive certifications recognized by the U.S. Department of Labor and Apprenticeship Carolina, making it a vital pipeline for skilled labor in the region.
A Strategic Transformation
The Aiken expansion is part of Rolls-Royce’s broader transformation program, which seeks to realign its business to focus on growth areas such as power generation and energy security. The investments in Aiken and Mankato reflect the company’s strategy to strengthen its U.S. manufacturing base and meet the needs of a dynamic and increasingly digital world.
Governor Henry McMaster welcomed the announcement, saying, “Rolls-Royce’s expansion in Aiken County further positions South Carolina as a leader in advanced manufacturing. This investment and the 60 jobs it will bring represent a big win for the community, and we are proud of the success Rolls-Royce has found in our state.”
With its combination of domestic manufacturing, technological innovation, workforce development, and environmental stewardship, Rolls-Royce’s Aiken facility is poised to become a cornerstone of the company’s North American operations—and a vital contributor to the United States’ energy resilience.
