AAON Announces Expansion Plans to Increase Production Capacity With New Facility In Memphis, Tennessee
AAON announces expansion with a new 787,000 square foot facility in Memphis, Tennessee, primarily focused on serving the growing data center market. The facility will manufacture various thermal management equipment under the BASX brand, including air-cooled systems, computer room air handlers, and liquid cooling distribution units. Expected to create 828 skilled jobs over five years, the facility will begin production in early 2025 and achieve full operational status within 12 months. This strategic expansion adds geographic diversification to AAON's manufacturing footprint while strengthening its position in the data center market.
AAON annuncia l'espansione con un nuovo stabilimento di 787.000 piedi quadrati a Memphis, Tennessee, principalmente volto a servire il crescente mercato dei data center. Lo stabilimento produrrà vari apparecchi per la gestione termica sotto il marchio BASX, inclusi sistemi di raffreddamento ad aria, gestori d'aria per sale computer e unità di distribuzione di raffreddamento a liquido. Si prevede che creerà 828 posti di lavoro specializzati nel corso di cinque anni, e la produzione inizierà all'inizio del 2025, raggiungendo uno stato operativo completo entro 12 mesi. Questa espansione strategica aggiunge diversificazione geografica alla presenza produttiva di AAON, rafforzando al contempo la sua posizione nel mercato dei data center.
AAON anuncia una expansión con una nueva instalación de 787,000 pies cuadrados en Memphis, Tennessee, enfocada principalmente en atender el creciente mercado de centros de datos. La instalación fabricará diversos equipos de gestión térmica bajo la marca BASX, incluyendo sistemas de enfriamiento por aire, manejadores de aire para salas de computadoras y unidades de distribución de refrigeración líquida. Se espera que cree 828 empleos especializados en cinco años; la producción comenzará a principios de 2025 y alcanzará el estado operativo completo en 12 meses. Esta expansión estratégica añade diversificación geográfica a la huella de fabricación de AAON, al tiempo que refuerza su posición en el mercado de centros de datos.
AAON은 테네시주 멤피스에 787,000 평방 피트 규모의 새로운 시설 확장을 발표하며, 이는 주로 증가하는 데이터 센터 시장에 서비스를 제공하는 데 초점을 맞추고 있습니다. 이 시설은 BASX 브랜드 하에 공기 냉각 시스템, 컴퓨터 룸 공기 핸들러 및 액체 냉각 분배 장치 등의 다양한 열 관리 장비를 제조할 예정입니다. 향후 5년간 828개의 숙련된 일자리를 창출할 것으로 예상되며, 생산은 2025년 초에 시작되고 12개월 이내에 완전 운영 상태에 들어갑니다. 이 전략적 확장은 AAON의 제조 범위에 지리적 다각화를 더하고 데이터 센터 시장에서의 입지를 강화합니다.
AAON annonce une expansion avec une nouvelle installation de 787 000 pieds carrés à Memphis, Tennessee, principalement axée sur le service du marché en pleine croissance des centres de données. L'installation fabriquera divers équipements de gestion thermique sous la marque BASX, y compris des systèmes de refroidissement par air, des gestionnaires d'air pour salles informatiques et des unités de distribution de refroidissement liquide. On s'attend à ce que cela crée 828 emplois qualifiés au cours des cinq prochaines années ; la production commencera début 2025 et atteindra un état opérationnel complet dans les 12 mois. Cette expansion stratégique ajoute une diversification géographique à l'empreinte manufacturière d'AAON tout en renforçant sa position sur le marché des centres de données.
AAON kündigt eine Expansion mit einer neuen Anlage von 787.000 Quadratfuß in Memphis, Tennessee an, die sich hauptsächlich auf die wachsende Nachfrage im Bereich der Rechenzentren konzentriert. Die Anlage wird verschiedene Geräte zur thermischen Verwaltung unter der Marke BASX herstellen, darunter luftgekühlte Systeme, Luftbehandler für Computerräume und Einheiten zur Verteilung von Flüssigkeitskühlung. Es wird erwartet, dass über einen Zeitraum von fünf Jahren 828 qualifizierte Arbeitsplätze geschaffen werden, die Produktion beginnt Anfang 2025 und erreicht innerhalb von 12 Monaten den vollständigen Betriebsstatus. Diese strategische Expansion erhöht die geografische Diversifizierung von AAONs Fertigung und stärkt gleichzeitig seine Position im Rechenzentrumsmarkt.
- Expansion with 787,000 sq ft facility enhances production capacity
- Creation of 828 new skilled jobs over 5 years
- Geographic diversification reduces operational risks
- Strategic expansion into growing data center market
- Production start planned for early 2025
- Significant capital investment required for new facility
- 12-month timeline to full operational status may impact immediate returns
Insights
This strategic facility expansion represents a significant move into the high-growth data center cooling market. The 787,000 square foot Memphis facility will substantially boost AAON's production capacity and create 828 skilled jobs over five years. The location choice is strategically sound, offering geographic risk diversification and improved proximity to data center customers.
The focus on data center cooling equipment (CRAHs, CDUs, evaporative coolers) positions AAON to capitalize on the explosive growth in data center construction driven by AI and cloud computing demands. The timeline for operations, with production in early 2025 and full operations within 12 months, suggests a well-planned implementation strategy. The investment demonstrates strong confidence in market demand and should strengthen AAON's competitive position in the thermal management solutions sector.
The expansion aligns perfectly with the surging demand in the data center cooling market, which is experiencing rapid growth due to increased digitalization and AI adoption. Memphis's strategic location and designation as the "Digital Delta" provides AAON with access to a skilled workforce and potential technology partnerships.
The comprehensive product range planned for the facility, including air-cooled systems and liquid cooling solutions, positions AAON to serve diverse data center cooling needs. The local government support and incentives suggest favorable operating conditions and potential tax benefits. This expansion should enhance AAON's market share in the data center vertical while providing geographic diversification benefits.
This facility will manufacture various types of thermal management equipment for data centers under the BASX brand, including air-cooled systems, computer room air handlers (CRAHs), direct evaporative coolers, and liquid cooling distribution units (CDUs), both liquid-to-liquid and liquid-to-air. The facility is expected to have limited production in early 2025 and be fully operational in approximately 12 months.
"The expansion of our production capacity through the purchase of this new facility marks a new chapter for AAON," said Gary Fields, AAON CEO, "Not only will this allow us to continue to capitalize on the rapidly growing data center market, it demonstrates the commitment we have to our data center customers and the confidence we have in the vertical strategy of this market. At the same time, we are thrilled to bring new jobs and investment to the
"After a rigorous due diligence process that included an intricate site search and detailed analysis of costs, risks, and return on investment, we are thrilled to announce the purchase of this new facility," said Matt Tobolski, AAON President, and COO, "This new capacity will ensure we are able to meet the growing demands from our data center customers, while also generating compelling returns on invested capital for our shareholders. To date, AAON has successfully supplied the highest performing, most efficient thermal management solutions to this end-market, and we look forward to continued success in the future."
AAON leadership extends appreciation to the
"Building a robust recruitment pipeline requires strong relationships with both industry leaders and our economic development partners," said
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AAON was represented in their site selection and real estate negotiations by John Beach and Susan Arledge, SIOR with Newmark, a global real estate service provider to large global corporations and other occupiers of commercial real estate.
Through the dedication of our people, we push the industry forward with innovative air solutions and pave the way for a better tomorrow. Together, we're making a difference. For Memphis job and career inquiries, email HelloMemphis@AAON.com.
About AAON
Founded in 1988, AAON is a world leader in HVAC solutions for commercial and industrial indoor environments. The Company's industry-leading approach to designing and manufacturing highly configurable equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. AAON is headquartered in
About BASX
BASX, a wholly owned subsidiary of AAON, is an industry leader in the manufacturing of high-efficiency data center cooling solutions, cleanroom systems, custom HVAC systems, and modular solutions. For the past 40 years, the BASX team has been recognized as leaders in the development of industry-changing innovation such as changes in the way fans are applied in modern air handling systems. Our team has a steadfast commitment to customer service and delivering on our promises while providing the highest quality products throughout the world. BASX's state-of-the-art manufacturing facility is located in
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "should", "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions.
Contact Information
Joseph Mondillo
Director of Investor Relations
Phone (617) 877-6346
Email: joseph.mondillo@aaon.com
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