AAON’s new facility in Memphis will primarily serve growing demand from the data center market.
TULSA, Okla.—AAON, Inc., a manufacturer of energy-efficient HVAC equipment, reported recently that it is expanding its production capacity with the purchase of a new 787,000-square-foot facility in Memphis, Tennessee, the company said in a release.
The Memphis facility will primarily serve growing demand from the data center market. It will manufacture various types of thermal management equipment for data centers under the BASX brand and is projected to create 828 skilled jobs at its location over the next five years of operation, according to the release.
BASX, a wholly owned subsidiary of AAON, manufactures high-efficiency data center cooling solutions, cleanroom systems, custom HVAC systems, and modular products.
According to AAON, the new facility will produce air-cooled systems, computer room air handlers (CRAHs), direct evaporative coolers, and liquid cooling distribution units (CDUs), including 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 will also add geographic diversification to the AAON’s current manufacturing footprint, mitigating certain operational risks and better serving its data center customers, the company said.
“The expansion of our production capacity through the purchase of this new facility marks a new chapter for AAON,” said AAON CEO Gary Fields, in the release. “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.”
AAON President and Chief Operating Officer Matt Tobolski also commented on the expansion.
“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,” Tobolski said in the release. “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.”