AAON, Inc. will invest $238 million to expand its presence to Tennessee. AAON has selected the former American Snuff facility in Memphis to house its new HVAC production operations. Through the project, the company plans to invest $238 million in Shelby County over the next five years.
“The expansion of our production capacity through the purchase of this new facility marks a new chapter for AAON,” said AAON CEO Gary Fields. “Not only will this allow us to continue to capitalize on the rapidly growing data center market, but it also 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.”
“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 AAON President and COO Matt Tobolski. “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 been very successful supplying the highest performing, most efficient thermal management solutions to this end-market, and we look forward to continued success in the future.”
The expansion to Tennessee will position AAON to better serve its customer base, and upon completion, the 787,000-square-foot facility will produce 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).
“I welcome AAON to Memphis, Tennessee, and thank this company for its commitment to creating 828 new jobs for the families across Shelby County. The state with the workforce wins the future, and we are committed to ensuring that AAON has the right support and surplus of skilled workers to fill these new positions,” said Governor Bill Lee.
Based in Tulsa, Oklahoma, AAON, Inc. is a global leader in HVAC solutions, employing nearly 4,000 people worldwide. The company engineers, manufactures and sells premium HVAC equipment consisting primarily of semi-custom and custom rooftop units, data center cooling solutions, cleanroom systems, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils and controls.
Since 2020, Tennessee Department of Economic and Community Development (TNECD) has supported more than 50 economic development projects in Shelby County, resulting in approximately 5,700 job commitments and $1.1 billion in capital investment.
“With easy access to water, rail, interstate and an international airport, Memphis is primed to support AAON’s expansion by strengthening the company’s reach to its global markets. I thank AAON for its significant investment in Shelby County and look forward to seeing how this project brings new life to the American Snuff facility, one of Tennessee’s historic buildings,” said TNECD Commissioner Stuart C. McWhorter.
