Rolls-Royce Invests $75M in US Manufacturing Expansion, Sells Naval Propulsors Business

Rolls-Royce is strengthening its manufacturing presence in the United States with a $75 million investment in its Aiken, South Carolina, facility. The funding will expand production capacity for mtu Series 4000 engines by enhancing in-house machining capabilities and enlarging the site, resulting in the creation of 60 new jobs.

“With this expanded investment, we’re improving our ability to serve U.S. customers, especially in the rapidly growing data center space,” said Adam Wood, Managing Director of Rolls-Royce’s Power Systems division in America. “Enhancing our machining operations in Aiken allows us to deliver more engines to Mankato, shortening lead times for our customers. It reflects our long-term commitment to building reliable, U.S.-made power solutions.”

This move is part of a broader investment strategy aimed at meeting rising demand in the U.S. data center market and supporting resilient, domestically manufactured power systems. Earlier this year, Rolls-Royce also committed $24 million to expanding its Mankato, Minnesota facility—an initiative that will add 100 new jobs to the company’s U.S.-based Power Systems division. In total, these two projects represent a $100 million investment in American operations.

South Carolina Governor Henry McMaster welcomed the news, stating, “Rolls-Royce’s growth in Aiken County highlights our state’s leadership in advanced manufacturing. This investment—and the 60 new jobs it will generate—is a significant win for the local community, and we’re proud of Rolls-Royce’s continued success here.”

As demand for dependable backup power continues to soar—particularly from data centers—Rolls-Royce has seen notable growth in orders for its high-performance mtu Series 4000 engines. These engines are manufactured in Aiken and assembled into complete generator sets at the Mankato plant. Currently, most components for the Series 4000 engines are machined in Germany and shipped to the United States as finished parts. The added machining capability in South Carolina marks a strategic step toward localizing more of the production process.

“Today’s announcement is a clear demonstration of our dedication to the U.S. market,” said Adam Riddle, CEO of Rolls-Royce North America. “With more than half of the world’s hyperscale data centers located here, America is a vital growth area for us. These investments enhance our ability to deliver robust, locally produced energy systems that help bolster U.S. energy security and independence.”

The Aiken facility expansion will occur in two phases: Phase one includes a 37,000-square-foot addition to the current manufacturing space, with construction beginning in Q1 2026 and production expected to start by July 2027. A potential second phase could add another 22,000 square feet, bringing the total expansion to 60,000 square feet.

The Aiken campus has grown into a 395,000-square-foot hub of innovation and production, featuring advanced manufacturing technologies, an engine testing center, a remanufacturing and overhaul facility, and four test stands. The site also includes an R&D center and administrative offices. In 2017, Rolls-Royce installed a 1.35 MW ground-mounted solar array across 7 acres, supplemented by a microgrid system that powers its entire administration building via solar panels installed on covered parking structures.

The Aiken facility is also known for launching South Carolina’s first-ever high school apprenticeship program. Modeled after Germany’s dual-education system, the initiative has trained more than 70 students since 2012, offering certifications recognized by both the U.S. Department of Labor and Apprenticeship Carolina.

Rolls-Royce's Aiken, South Carolina, facility. Credit: Rolls-Royce

Rolls-Royce also completed the sale of its Naval Propulsors business to Fairbanks Morse Defense (FMD), which includes Rolls-Royce’s naval propulsor operations located in Pascagoula, Mississippi, and Walpole, Massachusetts.

A separate agreement for the sale of Rolls-Royce’s Naval Handling business—also to FMD—is still pending finalization. That business is based in Peterborough, Ontario, Canada, and the deal is expected to close at a later date.

Despite these divestitures, Rolls-Royce will continue to operate its Naval Gas Turbines and Generator Sets businesses, which play a key role in delivering compact, power-dense propulsion and onboard energy systems for naval platforms.

These transactions are part of Rolls-Royce’s broader transformation initiative, which began in 2023. The strategy includes a focused effort to reposition its Defense business around key growth segments: combat systems, transport platforms, and submarines.