Dive Brief:
- Canada-based AVL Manufacturing has agreed to invest $56 million to establish its first U.S. production facility in Charlotte, North Carolina, to make industrial enclosures for large-scale power generators.
- The 232,000-square-foot plant, expected to open in September, will create about 300 jobs for the area, according to AVL. Hiring is set to begin in June.
- AVL’s custom enclosures are part of a growing market segment in North America, fueled by the proliferation of data centers to meet surging artificial intelligence demand.
Dive Insight:
Industrial enclosures are often used by technology companies to protect their generator sets — also known as “gensets” — from weather, dust and other environmental factors. Data centers rely on these enclosures for their backup power.
The global genset market was valued at $66.84 billion last year and is projected to cross $130.8 billion by 2037 due to increasing demand for power, according to Research Nester, a market research group based in New York City.
The North American market is likely to account for 45% of global revenue in the next 12 years, driven by the huge number of data centers across the continent, according to Research Nester. These data centers, which support cloud computing and internet connectivity, consume roughly 10 times more power than the average American household.
Some of the major players in the U.S. market are Schneider Electric, Emerson Electric Co. and Hubbell Inc. Additionally, Switzerland-based ABB recently pledged to invest $120 million in two U.S. manufacturing sites. It has a strong relationship with China, previously landing a contract to make genset enclosures for the country’s largest shipping company.
AVL, headquartered in Hamilton, Ontario, is expanding into the United States as chipmakers, drug companies and others pledge to expand or relocate their operations domestically in the face of volatile tariffs.
“After considering many markets, we are thrilled that AVL’s entrance into the US market is in Charlotte, a vibrant, tech-forward city perfect for us to lay down roots,” AVL President Vince DiCristofaro said in a statement. “We are excited to tap into this talent pool as we establish our state-of-the-art manufacturing facility and create meaningful careers for the residents of this city.”
The company established its AVL USA division as part of the move. It will receive a performance-based grant of $100,000 from the One North Carolina Fund, after creating 122 jobs in the Charlotte area, according to the state’s commerce department. The average salary for those jobs will be about $90,000 compared to the average Mecklenburg County wage of $86,830.
