Rolls-Royce Invests $24 Million to Expand U.S. Production of Data Centre Power Systems, Creating Over 100 Jobs

Rolls-Royce has announced a $24 million investment to expand its manufacturing footprint in the United States, more than doubling production capacity for back-up power systems for data centres and creating over 100 new jobs. The investment includes the construction of a new 250,000 square foot Logistics Operations Centre (LOC) adjacent to the company’s existing mtu manufacturing facility in Mankato, Minnesota.

This expansion will significantly boost production of mtu Series 4000 generator sets, which are in increasing demand from the rapidly growing data centre industry. The new LOC, which is expected to be operational by spring 2026, will support logistics and assembly functions in a climate-controlled environment, ensuring improved safety and operational efficiency. Rolls-Royce anticipates more than 120% growth in production at the Mankato site by 2026 compared to 2024.

“The U.S. market is very important to Rolls-Royce,” said Tufan Erginbilgic, CEO of Rolls-Royce. “We have a proud history in America and we are committed to strengthening our presence to support further growth, bringing economic benefits and job opportunities. This announcement is proof of the transformation of Rolls-Royce in action, enabling us to invest in areas of strategic focus, such as power generation.”

The mtu Series 4000 engines powering these generator sets are currently built at Rolls-Royce’s Aiken, South Carolina facility, which will also scale production and headcount in response to rising demand.

The investment supports Rolls-Royce’s strategic goal of expanding its Power Systems division, particularly in the data centre sector. Sales in this segment grew nearly 50% in 2024, with the U.S. leading global demand. Industry forecasts suggest that up to $1 trillion will be spent in the U.S. over the coming years on AI-driven data centre infrastructure.

“Our hyperscale data centre customers have relied on our solutions for over 15 years,” said Joerg Stratmann, CEO of Rolls-Royce Power Systems. “This investment reinforces our strategic commitment to the sector and positions us to meet the exponential demand for mission-critical power across the U.S.”

Since acquiring the Mankato business in 2007, Rolls-Royce has continued to invest heavily in the site, including a $13.9 million expansion and a new R&D centre completed in 2021.