Manufacturing and engineering giant Jabil has chosen a site in North Carolina to build a $500 million plant to support growing demand for data centers and cloud computing, Gov. Josh Stein announced Monday. This will be the company’s third location in the state.

The investment is expected to create 1,181 jobs in Rowan County, just north of Charlotte. Jabil is expanding its U.S. capacity to build equipment and infrastructure that supports the artificial intelligence boom.

“We are excited to help meet that demand, provide additional scale and capabilities for our data center customers, and empower the AI solutions of the future with Jabil’s new facility here in Rowan County,” Matt Crowley, executive vice president, global business operations, said in a statement.

Jabil’s project is estimated to grow the state’s economy by $3.2 billion over the next 12 years. The state also approved a job development grant for this project, with Jabil looking to create an annual payroll impact of more than $73.2 million for the region.

The investment is part of a broader strategy to diversify the company’s commercial portfolio and strengthen its position in the U.S. as volatile trade policies pressure customers across industries.

Jabil, a major components supplier to Apple, has 30 sites across the U.S., as well as global operations in Europe and Asia. The company, based in St. Petersburg, Florida, provides design, engineering and manufacturing services and solutions for the healthcare, automotive and consumer electronics markets, according to its website. It has also shifted its strategy to capitalize on growing demand for data centers that support cloud and artificial intelligence technologies.

“Demand for AI hardware is not slowing down. If anything, it’s accelerating,” Dastoor said on the earnings call. “The need for complex server and rack integration, advanced networking and innovative power and cooling solutions is surging.”

Jabil has already seen massive growth from the AI boom. The company generated Q3 revenue of $7.8 billion, up nearly 16% over last year. This was driven by a 51% increase in revenue from its intelligent infrastructure segment, led by demand for cloud and AI-related power, cooling and server rack solutions, CFO Greg Hebard said on the call.

The gains came after Jabil expanded its data center capabilities. Last October, the company acquired Mikros Technologies, a New Hampshire-based liquid cooling and thermal management solutions provider for data centers, energy storage and semiconductor testing.

Jabil plans to build on the Mikros acquisition with its expansion in the Southeast.

“This initiative is a key element of our long-term strategy to diversify our commercial portfolio and strengthen Jabil’s presence in the U.S.,” Dastoor said in a statement. “While the geopolitical landscape remains dynamic, our position as a U.S.-based company with a significant domestic footprint enables us to help the world’s leading brands navigate challenges with agility and resilience.”

By: DocMemory
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