Tennessee Gov. Bill Lee, Department of Economic and Community Development Commissioner Stuart C. McWhorter and AAON, Inc. officials announced the company will 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 create 828 new jobs and invest $238 million in Shelby County over the next five years.
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).
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, 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.
“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.” – Gov. Bill Lee
“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.” – TNECD Commissioner Stuart C. McWhorter
“The expansion of our production capacity through the purchase of this new facility marks a new chapter for AAON. 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.” – AAON CEO Gary Fields
“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. 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.” – AAON President and COO Matt Tobolski
“TVA and Memphis Light Gas and Water congratulate AAON on its decision to establish operations in Shelby County, Tennessee. Working to attract and retain companies creating job opportunities and investment in the region is fundamental to TVA’s mission of service. We are proud to partner with the Tennessee Department of Economic and Community Development and the Greater Memphis Chamber to further that mission and look forward to AAON’s future business success.” – John Bradley, TVA senior vice president of economic development
“Creating new HVAC-related jobs in Shelby County gives Shelby County’s skilled workforce more opportunities. I’m pleased AAON has chosen Shelby County, so we can continue to empower individuals, strengthen families, and build a community where everyone can thrive.” – Shelby County Mayor Lee Harris
"Building a robust recruitment pipeline requires strong relationships with both industry leaders and our economic development partners. Welcoming AAON to Memphis represents a significant step toward making our market even more competitive on a national level. With AAON's commitment, we are enhancing our local economy and elevating Memphis as a destination for high-quality jobs and sustainable industry growth." – Memphis Mayor Paul Young
“We are proud to partner with our Tennessee economic development partners to continue to recruit industry experts and leading companies like AAON to our region. With our lucrative geographic position, Memphis is poised to offer unmatched logistics opportunities – underscored by an efficient business environment. We’re looking forward to AAON’s expansion into the Bluff City, bringing with it increased jobs and community investment.” – Dr. Joann Massey, EDGE President and CEO
“AAON’s decision to build its latest manufacturing and logistics hub in South Memphis highlights our city as a prime location for economic growth and innovation. These new, good-paying jobs are a testament to the promise Memphis holds. I congratulate AAON and want the world to know: Memphis is ready to work, grow and thrive together.” – Sen. London Lamar (D-Memphis)
“The creation of more than 800 new jobs for our constituents is always a cause for celebration. We’re thankful for AAON and it’s $238 million investment. We hope to continue to work together with businesses, the city, the county and TNECD to keep attracting good corporate neighbors and inject more jobs and opportunity to District 84. I look forward to the ribbon cutting ceremony.” – Rep. Joe Towns Jr. (D-Memphis)