AAON Expanding Manufacturing for Data Center Market

TULSA, Okla. — AAON Inc. is expanding its production capacity with the purchase of a 787,000-square-foot facility in Memphis, Tennessee. The facility will be used to meet the growing demand from the data center market and is projected to employ more than 800 skilled workers within five years, a press release from AAON said.

The expansion will also add geographic diversity to AAON’s manufacturing footprint, mitigating operational risks and helping the company better serve data center customers, the press release said.

The facility will manufacture 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 begin 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 Memphis community and look forward to seeing the positive impact it will have on both our company and the local economy.”

“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,” said said Matt Tobolski, AAON president and COO. “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.”

The state of Tennessee, the city of Memphis, the Greater Memphis Chamber, and Memphis and Shelby County EDGE (Economic Development Growth Engine) were helpful in the company’s decision, the company’s press release said.

“Building a robust recruitment pipeline requires strong relationships with both industry leaders and our economic development partners,” said Memphis Mayor Paul Young. “Welcoming AAON to Memphis represents a significant step toward making our market even more competitive on a national level. With AAON’s commitment, we are enhancing our local economy and elevating Memphis as a destination for high-quality jobs and sustainable industry growth.”