Rolls-Royce invests $24M to expand backup power system manufacturing facility in Minnesota 

Rolls-Royce has announced plans to expand its manufacturing operations in Mankato, Minnesota. The company, which produces backup power generation systems for data centers, is investing $24 million in a new facility that will create more than 100 new jobs. 

The expansion includes a 250,000-square-foot Logistics Operations Center (LOC) built adjacent to the existing manufacturing plant. The Mankato facility manufactures mtu Series 4000 generator sets, and this investment will more than double production by 2026 compared to the previous year. 

The LOC will provide capacity for both logistics and assembly operations, all conducted in climate-controlled environments. This setup supports safety goals while accommodating increased throughput. Rolls-Royce expects the new facility to be operational by next spring, with jobs added over the next three years. 

The mtu Series 4000 engines used in the generator sets are built at the company’s facility in Aiken, South Carolina, which is also ramping up production to meet growing demand. This expansion aligns with Rolls-Royce’s broader efforts to grow its power generation business, especially in the rapidly expanding data center market. 

What people are saying 

In a recent quote, Tufan Erginbilgic, CEO, Rolls-Royce, said, “The U.S. market is very important to 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. Today’s announcement is proof of the transformation of Rolls-Royce in action, enabling us to invest in areas of strategic focus, such as power generation.” 

Joerg Stratmann, CEO of Power Systems, Rolls-Royce, added, “Our hyperscale data center customers have relied on our solutions and partnership for mission critical power for over 15 years – a result of our strategic focus and continuous investment in this sector. This deliberate market positioning has enabled us to effectively address the exponential rise in demand from the data center industry, particularly in the U.S. where this critical new infrastructure will be built.” 

Manufacturers investing in Minnesota 

Sofidel invests $200M to expand manufacturing operations in Minnesota 
The investment will be used to expand and upgrade its existing facility where raw materials are processed, manufactured, and packaged into finished goods.

Chemical manufacturer receives $213.6 million loan from DOE to build a new facility in Minnesota 
The new 500,000-square-foot facility will manufacture bio-based organic acids for a variety of industries, including concrete, cleaning, agricultural, and energy.

Marotta Controls opens motor manufacturing facility in Minnesota 
The new 10,000-square-foot plant will manufacture Motorfox brushless DC motors.

Investing in American manufacturing in 2025 

This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.