Rolls-Royce Expands U.S. Manufacturing with $75 Million Investment in South Carolina

Rolls-Royce Holdings plc announced on July 15, 2025, a significant expansion of its U.S. manufacturing capabilities through a $75 million investment in its Aiken, South Carolina engine plant, dedicated to the production of mtu Series 4000 engines. This initiative aims to enhance the facility’s machining capabilities, ultimately creating 60 new jobs and increasing the total workforce at the site to 434 full-time positions.

The South Carolina Coordinating Council for Economic Development has approved job development credits related to this project, highlighting the importance of manufacturing investments in the state. Earlier in 2025, Rolls-Royce also announced a $24 million expansion of its facility in Mankato, Minnesota, which is expected to add 100 jobs to its Power Systems division. These combined investments reflect the growing demand for reliable power generation solutions, particularly in response to the rapid growth of data centers across the United States.

Adam Wood, Managing Director of Rolls-Royce Power Systems in America, stated, "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."

The expansion of the Aiken facility will occur in two phases, with phase one scheduled to increase the manufacturing footprint by 37,000 square feet. Construction is set to commence in the first quarter of 2026, with production beginning in July 2027. A potential second phase could add another 22,000 square feet, bringing the total expansion to 60,000 square feet.

South Carolina Governor Henry McMaster remarked on the significance of the expansion, stating, "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."

Adam Riddle, CEO of Rolls-Royce North America, emphasized the company’s long-term commitment to the U.S. market, noting, "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."

The demand for high-power mission-critical backup generators has surged significantly in recent years, with sales of power generation products for the data center segment growing nearly 50% in the previous year. As the market continues to expand, projections estimate that global investments in AI data centers, components, and associated infrastructure may reach as much as $1 trillion over the next few years.

In addition to supporting data centers, Rolls-Royce provides high-performance backup generators for essential U.S. infrastructure, including hospitals and government installations. Since the commencement of production in 2010, the Aiken facility has been a hub for innovation, encompassing a 395,000 square foot campus that includes advanced production capabilities, an engine testing facility, and a research and development center.

The facility also boasts a groundbreaking High School Apprenticeship Program, modeled after the German dual-education system, which has trained over 70 students since its inception in 2012. Successful graduates earn certificates recognized by both the U.S. Department of Labor and Apprenticeship Carolina.

Overall, this investment is a crucial part of Rolls-Royce’s strategic initiative to grow its power generation business, supporting its transformation program aimed at enhancing manufacturing capabilities while addressing the evolving energy needs of the market.