New 250,000-Square-Foot Logistics Operations Center Creates More Than 100 Jobs, Strengthens U.S. Manufacturing and Energy Infrastructure
MANKATO, Minn. (July 15, 2026) — Rolls-Royce has officially opened a new 250,000-square-foot Logistics Operations Center (LOC) in Mankato, Minnesota, marking a $24 million investment that will more than double the company’s production capacity for mission-critical backup power systems across the Americas. The expansion is creating more than 100 new jobs, increasing the local workforce by nearly 20% and reinforcing Mankato’s position as a key manufacturing hub for the company.
Located adjacent to Rolls-Royce’s existing mtu power generation manufacturing facility, the new center expands logistics and production capabilities for mtu Series 4000 generator sets, which provide emergency backup power for hospitals, airports, industrial facilities, data centers, and other critical infrastructure.
Investment Supports America’s Manufacturing Growth
Rolls-Royce executives said the expansion reflects the company’s long-term commitment to strengthening domestic manufacturing while helping meet rising demand for resilient energy infrastructure.
“As demand for reliable, independent energy accelerates in the U.S., 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,” said Jörg Stratmann, CEO of Rolls-Royce Power Systems. “Mankato plays an essential role in both the future of Rolls-Royce and U.S. manufacturing.”
The project continues Rolls-Royce’s broader strategy of investing in American manufacturing, following the company’s $75 million expansion of its Aiken, South Carolina, engine manufacturing facility announced in 2025. Engines produced in Aiken power the generator systems assembled in Mankato.
Facility Designed for Future Growth
The newly completed Logistics Operations Center was purpose-built to support higher production volumes while improving operational efficiency.
Facility highlights include:
- $24 million capital investment
- 250,000-square-foot Logistics Operations Center
- More than 100 new jobs created
- Production capacity expected to more than double by the end of 2026
- Approximately two-thirds of the building dedicated to logistics operations
- Climate-controlled logistics and assembly areas
- Interior loading and unloading facilities
- Space designed to accommodate future production growth
Supporting Critical Infrastructure Across North America
The expansion comes as demand continues to surge for reliable backup power systems supporting industries where uninterrupted electricity is essential.
Generator systems manufactured in Mankato provide emergency power for:
- Hospitals and healthcare facilities
- Data centers
- Airports
- Industrial manufacturing operations
- Transportation infrastructure
- Other mission-critical facilities
According to Rolls-Royce, its backup power systems currently support more than 25% of U.S. data centers, helping maintain operations without placing additional strain on local electrical grids.
Community Leaders Welcome Expansion
Local and state officials praised the investment for its economic impact and long-term benefits to southern Minnesota.
Mankato Mayor Najwa Massad called Rolls-Royce a longstanding community partner, noting the expansion will generate new high-skilled manufacturing jobs while strengthening the local economy.
Catalina Valencia, Executive Director of Business Development for the Minnesota Department of Employment and Economic Development (DEED), said the investment reinforces Minnesota’s competitiveness by expanding advanced manufacturing capabilities, skilled workforce opportunities, and regional supply chains.
Part of a Larger U.S. Investment Strategy
The Mankato project builds on more than $1.5 billion invested by Rolls-Royce in the United States over the past decade.
Today, the company:
- Operates 34 facilities across 26 states
- Employs more than 5,000 people in the U.S.
- Supports over 1,000 American suppliers
- Contributes more than $6.2 billion annually to the U.S. economy, according to its latest Economic & Social Impact Report
The expanded Mankato facility positions Rolls-Royce to meet growing demand for backup power solutions as investments continue across healthcare, transportation, manufacturing, cloud computing, and data center infrastructure.
