Market news, 27 January 2025
AAON Expands Production Capacity with New Facility in Memphis, Tennessee
Date:
18 November 2024
AAON, Inc., a prominent leader in energy-efficient HVAC solutions, has announced its plans to enhance production capacity by acquiring a 787,000-square-foot facility in Memphis, Tennessee. This strategic expansion aims to meet the growing demand from the data center market and create 828 skilled jobs over the next five years. The new facility will also provide geographic diversification, ensuring operational resilience and improved service to key customers in the data center industry.
The Memphis facility will specialize in manufacturing advanced thermal management equipment under the BASX brand. Products to be produced include air-cooled systems, computer room air handlers (CRAHs), direct evaporative coolers, and liquid cooling distribution units (CDUs) designed for both liquid-to-liquid and liquid-to-air applications. Initial production is set to commence in early 2025, with full-scale operations expected within 12 months.
This expansion reflects AAON’s commitment to addressing the increasing demand for high-performance cooling solutions in the rapidly expanding data center sector. It underscores the company's focus on innovative technology and its strategic alignment with market trends. The facility's advanced production capabilities will enable AAON to support the industry's transition to more efficient and sustainable thermal management solutions.
The decision to establish a presence in Memphis was influenced by the city’s strong support from local and state organizations, its economic competitiveness, and its strategic location. This move not only strengthens AAON’s manufacturing footprint but also reinforces Memphis’s position as a hub for industrial and economic growth.
The development aligns with AAON’s broader goal of creating long-term value for customers and stakeholders while contributing to the local community's economic growth. The new facility is expected to play a pivotal role in supporting the data center industry's growth and setting new standards for energy efficiency and sustainability.
The Memphis facility will specialize in manufacturing advanced thermal management equipment under the BASX brand. Products to be produced include air-cooled systems, computer room air handlers (CRAHs), direct evaporative coolers, and liquid cooling distribution units (CDUs) designed for both liquid-to-liquid and liquid-to-air applications. Initial production is set to commence in early 2025, with full-scale operations expected within 12 months.
This expansion reflects AAON’s commitment to addressing the increasing demand for high-performance cooling solutions in the rapidly expanding data center sector. It underscores the company's focus on innovative technology and its strategic alignment with market trends. The facility's advanced production capabilities will enable AAON to support the industry's transition to more efficient and sustainable thermal management solutions.
The decision to establish a presence in Memphis was influenced by the city’s strong support from local and state organizations, its economic competitiveness, and its strategic location. This move not only strengthens AAON’s manufacturing footprint but also reinforces Memphis’s position as a hub for industrial and economic growth.
The development aligns with AAON’s broader goal of creating long-term value for customers and stakeholders while contributing to the local community's economic growth. The new facility is expected to play a pivotal role in supporting the data center industry's growth and setting new standards for energy efficiency and sustainability.
