Rolls-Royce cuts ribbon on Minnesota expansion

Rolls-Royce has officially opened a new $24 million, 250,000 sq. ft. Logistics Operations Center (LOC) in Mankato, Minn., USA, adjacent to its existing MTU power generation manufacturing facility.

The expansion is expected to allow Rolls-Royce to more than double production capacity for its MTU Series 4000 generator sets, used to provide backup power for large-scale critical infrastructure across the Americas, including hospitals, airports, industrial sites and data centers. This investment will reportedly create more than 100 local jobs, a nearly 20% workforce increase, making Rolls-Royce one of the largest manufacturers in Mankato.

“As demand for reliable, independent energy accelerates in the U.S.,” Jörg Stratmann, CEO, Rolls-Royce Power Systems, “this investment enables Rolls-Royce to keep pace with the market and provide mission-critical backup power generation at a greater scale than ever before. Mankato plays an essential role in both the future of Rolls-Royce and U.S. manufacturing – the American-made generators built here power economic activity and critical infrastructure across the Americas.”

Jörg Stratmann, CEO of Rolls-Royce Power Systems, and Najwa Massad, mayor of Mankato, at the opening of Rolls-Royce’s new Logistics Operations Center in Mankato, Minnesota, USA. The $24 million expansion was officially inaugurated in the presence of representatives from government, business and the company. (Photo: Rolls-Royce Power Systems)

The LOC provides additional capacity for logistics and assembly operations and was purpose built to support increased production of Series 4000 generator sets. Approximately two-thirds of the Mankato LOC is dedicated to logistics operations, with the remaining space supporting production activities. The facility includes climate-controlled areas, interior loading and unloading capabilities and room for future expansion as demand grows.

“Rolls-Royce has a deep history in Mankato, and we are proud to demonstrate our continued commitment to grow in and with this community,” said Adam Wood, managing director, Rolls-Royce Solutions America. “From the beginning, providing essential power systems for local farmers, to today, where we are producing large-scale generators that support critical infrastructure across the country, the impact of our Mankato facility is defined by the people who keep it running, generation after generation.”

The generator sets produced in Mankato use MTU Series 4000 engines that are built at the Rolls-Royce facility in Aiken, S.C., where Rolls-Royce announced a $75 million capital investment in July 2025.

The Mankato investment, first announced in June 2025, is expected to increase production capacity for mission-critical backup power systems by more than double by the end of 2026. Today, Rolls-Royce backup power systems support more than 25% of U.S. data centers, alongside other critical infrastructure, providing always-on power without impacting local energy grids.

“Rolls-Royce continues to be a tremendous multi-decade partner to Mankato,” said Najwa Massad, mayor, City of Mankato. “From groundbreaking to ribbon cutting, I’ve witnessed this $24 million investment in our community take shape, and I look forward to seeing its long-term impact with new high-skill jobs and business opportunities. This commitment from Rolls-Royce is exactly the kind of energy we need to keep our city’s economy growing.”

The company said the expanded facility will help meet growing demand from customers across healthcare, transportation, industrial, data center, and other critical infrastructure sectors, where reliable backup power is essential to maintaining operations and supporting economic growth.

The expansion builds on more than $1.5 billion invested by Rolls-Royce in the U.S. over the past decade. Across 34 locations in 26 states, Rolls-Royce employs more than 5,000 people and supports more than 1,000 U.S. suppliers.