7/16/2025
When people talk about artificial intelligence, they usually focus on software, algorithms, and futuristic tools. But behind every AI model, every chatbot, and every autonomous system lies something far more grounded: physical infrastructure. From data centers to cooling systems to semiconductor fabs, the AI boom depends on real-world equipment, and that means manufacturing.
American manufacturers are playing a central role in making AI possible. While the models live in the cloud, it’s manufacturers who are building the machines, components, and structures that support them. In fact, as AI adoption accelerates, the demand for supporting infrastructure is kicking off one of the most significant industrial expansions in recent history.
The Data Center Surge
At the heart of AI’s infrastructure story is the rapid growth of data centers. These facilities house the computing power that trains and runs AI models. But AI workloads require far more processing and energy than traditional applications, and that’s changing the landscape of data center construction.
According to McKinsey, global demand for AI-ready data center capacity is growing by more than 30 percent per year. By 2030, capital investment in AI data centers is expected to exceed $5 trillion, much of it concentrated in the U.S.1
Here at home, the Department of Energy recently identified 16 federally owned sites that could be repurposed for AI-focused data centers.2 These locations have strong existing power infrastructure, ideal for expansion. Meanwhile, private developers are racing to build hyperscale and edge data centers across the country. It’s estimated that around 60 percent of new global data center construction over the next few years will take place in the United States.3
Manufacturing the Foundations
All this growth depends on materials, machines, and labor. U.S. manufacturers are supplying the steel, HVAC systems, cooling units, structural modules, and electrical components that make these centers possible.
It doesn’t stop at buildings. The semiconductor shortage taught us the importance of domestic chip production, and policymakers responded with the CHIPS and Science Act. That legislation has already spurred investment in multiple U.S. chip fabrication plants, including massive builds by TSMC in Arizona and Samsung in Texas.4 These plants require cutting-edge cleanroom systems, precision machining, and automated material handling—all produced by American manufacturers.
Companies like Nvidia are also bringing their operations stateside. In partnership with Foxconn, Nvidia plans to build a new AI supercomputer manufacturing facility in Houston. Meanwhile, electronics manufacturer Jabil is investing $500 million into a new North Carolina plant focused on AI-related hardware, creating 1,200 new jobs.5
This wave of industrial investment doesn’t just benefit the tech giants as it creates opportunities across the entire manufacturing supply chain.
New Industries Emerging
As AI adoption grows, it’s giving rise to new manufacturing sectors that didn’t exist a decade ago.
Take cooling, for example. Traditional air-cooled data centers can’t handle the heat generated by AI servers, which may draw more than 50 kilowatts per rack. That’s led to a boom in U.S. companies designing liquid cooling systems, chilled door units, and advanced thermal solutions. These products are in high demand and are being manufactured at scale to meet infrastructure needs.
Another fast-growing space is modular and edge data centers. These are smaller, prefabricated facilities that can be deployed closer to the point of use. These cases can vary from a factory floor, a hospital, to a retail hub. American manufacturers are leading the way in fabricating these structures, helping tech companies deploy AI in remote or decentralized environments.
Even energy infrastructure is getting a boost. With AI workloads expected to require 30 times more power by 2035, transformers, substations, and power distribution equipment are being produced and upgraded across the country.6 Utilities and manufacturers are working together to modernize the grid, and it’s creating new demand for domestic production of energy equipment.
Why It Matters
AI is often seen as an abstract, digital technology. But what’s happening in U.S. manufacturing is a reminder that progress doesn’t just live in the cloud, it’s built with steel, silicon, copper, and skilled hands.
By supporting the development of AI infrastructure, American manufacturers are doing more than meeting demand. They’re helping ensure that the next generation of technology is built on a foundation of resilience, security, and economic opportunity.
As we look to the future, it’s not just about coding smarter algorithms. It’s also about building smarter factories, stronger supply chains, and a more self-reliant industrial base.
The AI revolution is here, and American manufacturing is playing a pivotal role in building the infrastructure that enables the technology. As demand for data centers, advanced electronics, and energy systems grows, so do the opportunities for innovation and expansion. Manufacturers that embrace this moment with the right technology, partnerships, and strategy will be the ones who lead the next era of industrial growth. MMTC is here to support you every step of the way, from optimizing your operations to integrating technology and enhancing cybersecurity.
Contact your Business Solutions Manager today to learn how we can help your business benefit from our AI-powered future!
About the Author: Josh Johnston, Lean Program Manager
Joining The Center in 2024, Josh leverages continuous improvement tools and leadership philosophies to help Michigan manufacturers achieve their goals and objectives. His areas of expertise lie in Lean implementation, project management, value stream mapping, and kaizen facilitation. With a solid foundation in continuous improvement and a commitment to driving operational excellence, Josh is dedicated to fostering innovation and efficiency in Michigan's manufacturing sector.
Sources:
- https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ai-power-expanding-data-center-capacity-to-meet-growing-demand
- https://www.energy.gov/articles/doe-identifies-16-federal-sites-across-country-data-center-and-ai-infrastructure
- https://thenetworkinstallers.com/blog/ai-data-center-statistics/
- https://www.nist.gov/chips/tsmc-arizona-phoenix
- https://www.constructconnect.com/construction-economic-news/nvidia-plans-to-invest-500-billion-in-us-manufacturing
- https://www.deloitte.com/us/en/insights/industry/power-and-utilities/data-center-infrastructure-artificial-intelligence.html
Categories: Advanced Manufacturing,
Continuous Improvement,
Data & Trends,
Industry 4.0,
Innovation,
Technology,
Workplace Safety