Rolls-Royce increases U.S. manufacturing capabilities in South Carolina

• $75M investment and creation of 60 jobs to increase production of mtu Series 4000 engines
• New in-country machining capabilities
• Combined $100M investment in American facilities to support data center industry growth and need for resilient, U.S.-built power

Rolls-Royce (LSE: RR., ADR: RYCEY) today announces it is expanding U.S. manufacturing capabilities with a $75M investment in its Aiken, South Carolina engine plant for mtu Series 4000 production. The investment will increase machining capabilities and grow the facility’s footprint, creating 60 new jobs in the United States with a total of 434 full-time positions at the facility. The South Carolina Coordinating Council for Economic Development approved job development credits related to the project. 

Earlier this year, Rolls-Royce announced a $24M expansion of its Mankato, Minnesota facility, adding 100 jobs to its Power Systems division in the U.S. These investments reflect the rapid growth of data centers in the U.S., increasing pressure on electric grids and the critical need for reliable power generation. 

Demand for high-power mission critical backup generators from Rolls-Royce has grown considerably over the past decade. The mtu Series 4000 engines that power these systems are built in Aiken and then assembled into complete generator sets at the Rolls-Royce facility in Mankato.

Adam Wood, Managing Director for Rolls-Royce’s Power Systems division in America said: “The increased investment strengthens our ability to serve our U.S. customers – especially in the fast-growing American data center industry. 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.” 

With this investment, Rolls-Royce will machine additional mtu Series 4000 components in the U.S. Currently, most of the components are machined in Germany and sent to the U.S. as finished goods. To meet demand, additional in-country machining is essential.

Henry McMaster, Governor of South Carolina said: “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.”

The facility will be expanded in two phases. Phase one will grow the existing manufacturing footprint by 37,000 sq.ft. In a potential further phase, another 22,000 sq. ft. of manufacturing space could be added (60,000 sq. ft. in total). Construction for Phase 1 will begin in Q1 2026 with production set to begin in July 2027.

Adam Riddle, CEO, Rolls-Royce North America, said: “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. With more than half the world’s hyperscale data centers located here in the U.S., this will continue to be a key growth market for many years to come.”

Last year sales of power generation products for the data center segment grew almost 50%. As much as $1 trillion is expected to be spent globally on AI data centers, components and associated infrastructure over the next few years. In addition to data centers, Rolls-Royce provides high performance backup generators to power critical U.S. infrastructure including hospitals, municipalities and government installations.

Since the start of production in 2010, Rolls-Royce’s Aiken campus has been the site of continuous innovation and expansion. It now encompasses a 395,000 square foot campus with state-of-the-art production capabilities, an engine testing facility, office space, a research and development center, four large engine test stands and a remanufacturing and overhaul center. In 2017, the company added a 1.35 MW ground-mounted solar array on approximately 7 acres and has an additional microgrid that generates enough solar power from panels on its covered parking lot to supply its entire administration building.

The Aiken facility pioneered a nationally recognized High School Apprenticeship Program which was the first-ever vocational apprenticeship program for high school students in the state, training more than 70 students since its inception in 2012. Modelled after the German dual-education system to help cultivate the next generation of skilled manufacturing professionals, successful graduates earn certifications recognized by both the U.S. Department of Labor and Apprenticeship Carolina. 

Rolls-Royce’s transformation program is enabling it to deliver on its strategic choices. The investment in Aiken is an example of that transformation in action, as it supports the company’s strategic initiative to grow its power generation business.