BorgWarner Announces Major Expansion of North Carolina Facility
The rapid growth of artificial intelligence data centers is creating opportunities across multiple industries, and automotive technology company BorgWarner is the latest business looking to capitalize on this expanding market.
The company plans to invest $100 million in the expansion of its existing manufacturing facility at Blue Ridge Commerce Center in Flat Rock, North Carolina. The project will add approximately 140,000 square feet to the site, enabling BorgWarner to produce advanced turbine systems designed to generate power for AI-focused data centers. Production at the upgraded facility is expected to begin in 2027.
As demand for AI technologies continues to rise, companies around the world are investing hundreds of billions of dollars in data center infrastructure. Unlike traditional facilities, AI-powered data centers require significantly greater computing power and energy capacity, driving demand for innovative power-generation solutions.
BorgWarner, headquartered in Auburn Hills, Michigan, has built its reputation by manufacturing turbochargers for the automotive industry. Leveraging decades of engineering expertise, the company has developed a new turbine technology capable of supporting the energy needs of modern AI data centers.
Earlier this year, BorgWarner secured a supply agreement with TurboCell, a subsidiary of data center infrastructure developer Endeavour. Under the deal, the company will provide turbine systems designed specifically for data center applications.
The move highlights the growing role of industrial manufacturers in supporting AI infrastructure development. Companies from various sectors are contributing essential technologies to the data center ecosystem. Fiber-optic solutions, cooling technologies, and advanced power systems are increasingly important as AI workloads place greater demands on infrastructure.
Industry leaders such as Corning provide critical fiber-optic components, while global engineering firms including Mitsubishi and Schneider Electric offer advanced cooling technologies that help maintain optimal operating temperatures for AI computing equipment.
Company executives believe BorgWarner’s turbine technology has broad applications across the AI data center industry. During a recent investor discussion, CEO Joseph Fadool expressed confidence in the company’s ability to serve this rapidly growing market.
According to Fadool, BorgWarner’s power-generation solutions are well-positioned to meet the evolving requirements of data center operators. He also noted that the company’s technologies can support battery energy storage systems, another area experiencing increased demand from data center developers.
Meanwhile, major technology companies such as Google and Microsoft continue to invest heavily in AI research and infrastructure as competition intensifies within the sector. Significant spending on data centers and advanced semiconductor technologies remains a top priority across the industry.
OpenAI and Oracle are also pursuing large-scale expansion plans through the Stargate initiative, a project aimed at developing up to $500 billion worth of AI data center infrastructure globally. One of the project’s major facilities, valued at approximately $16 billion, is currently under development in Saline, Michigan.
To support BorgWarner’s expansion, the state of North Carolina has approved a package of financial incentives. The company could receive up to $3.7 million in tax rebates over the next 12 years based on projected employment growth. In addition, local governments may receive up to $410,000 in funding for road upgrades and infrastructure improvements surrounding the facility.
Beyond its Flat Rock operations, BorgWarner also maintains a 358,000-square-foot manufacturing facility in Arden, North Carolina. Some employees hired for the company’s data center turbine division are expected to work at the Arden location until construction and expansion activities at the Flat Rock facility are completed.
Source: Original reporting by Andy Peters, CoStar News.
