AI-fueled demand for data center power is driving Rolls-Royce to expand its operations in the U.S.

The U.K.-based manufacturer announced it will invest $75 million to expand its Aiken, South Carolina, engine plant, adding 60,000 square feet of production space to meet the booming need for backup power and industrial engines.

“We are proud to support America’s growing demand for reliable, domestically made energy systems that strengthen our nation’s energy independence and security,” said Adam Riddle, CEO of Rolls-Royce North America.

Construction on the expansion will begin in early 2026, with the project boosting output of Series 4000 engines, which supply power for data centers, hospitals, locomotives, superyachts, and more. The new capacity will help Rolls-Royce build more engine parts in the U.S. instead of importing components from Germany.

The company expects to add about 60 new jobs at the Aiken site, with the expanded production lines set to be fully operational by July 2027.

“By increasing our machining capabilities in Aiken, we can supply more engines to Mankato, enabling us to deliver more gensets with shorter lead times,” said Adam Wood, managing director for Rolls-Royce’s power systems division in America.

The Aiken upgrade follows a $24 million expansion of Rolls-Royce’s Mankato, Minnesota, plant, announced last month.

Rolls-Royce’s investment aligns with a wave of U.S. manufacturing expansions to support record data center growth, as surging AI adoption places new demands on power infrastructure. The company reported that its data center-related sales rose 50% last year and expects up to $1 trillion in global spending on AI data centers over the next few years.

To keep pace, other major manufacturers are also ramping up: Jabil plans a $500 million facility in North Carolina for liquid cooling systems, and Schneider Electric is spending $700 million to expand and modernize its U.S. factories to meet future demand.

The Electric Power Research Institute projects that electricity use by data centers in the U.S. could double by 2030, putting extra pressure on grid reliability and backup power supplies. Rolls-Royce’s move to localize more production helps reduce supply chain delays and brings new high-skill manufacturing jobs to the Southeast.

The expansion in Aiken will be completed in two phases, adding 37,000 square feet first and then another 22,000 square feet of advanced manufacturing space. The project will benefit from South Carolina’s Coordinating Council for Economic Development, which approved job development credits to support the investment.

Rolls-Royce, a global leader in civil aerospace, defense, and industrial power, is betting that building more capacity in America will help it capture a larger share of the growing data center and clean energy market in North America.

Originally reported by Nathan Owens in Manufacturing Dive.