Caterpillar breaks ground on large engine campus expansion

The expansion of the 1.6 million-sq.-ft. manufacturing plant will increase capacity for both new engines and aftermarket parts. (Photo: Caterpillar)

Caterpillar Inc. announced last week that it has broken ground on a major expansion at its Lafayette, Ind. large engine facility. The multi-year $725 million capital investment in the site had been previously reported.

The expansion of the 1.6 million-sq.-ft. manufacturing facility will increase capacity for both new engines and aftermarket parts. Construction of a new 300,000-sq.-ft. building will allow the company to expand its ability to build and test new engines and gen-set packages, and provide aftermarket components by expanding the campus’ footprint, refurbishing equipment and investing in additional equipment.

The expansion project represents the largest investment in Lafayette since the facility opened in 1982. It is intended to support a growing need for backup and prime power for data centers globally, driven in part by cloud computing and generative artificial intelligence, the company stated.

“We’re excited for the opportunity to further invest in our Lafayette Engine Center to continue to deliver for our customers,” said Bart Myers, Caterpillar senior vice president of Large Power Systems, who has responsibility for the Lafayette campus. “We are grateful to the State of Indiana and the City of Lafayette for their support as we make this investment to ensure adequate capacity while enhancing safety for our employees.”

The Lafayette Redevelopment Commission was reported to have approved two 10-year tax abatement requests totaling $100 million for the project.

The expansion project is expected to result in 100 new jobs on the campus. The facility currently employs nearly 1,900 workers.