AVK seals long-term Rolls-Royce deal for UK data hubs

AVK has signed a new multi-year capacity framework with Rolls-Royce's Power Systems division that will reserve production slots for mtu generator sets and extend the companies' system integration partnership across the UK and Ireland.

The agreement builds on a period of record demand for mtu equipment in AVK projects. AVK delivered its 500th mtu generator in 2024, with most sets supplied into the European data centre market.

The new framework formalises a five-year capacity partnership between Rolls-Royce Power Systems and AVK. Rolls-Royce will increase supply of mtu Series 4000 generator sets. AVK will commit to order volumes over the term of the deal.

The companies have also agreed on a six-year master framework. This designates AVK as the exclusive System Integrator for mtu generator sets in the UK and Ireland until 2031.

The master framework sets commercial terms and pricing. It also defines delivery lead times, compliance standards and anti-bribery obligations for joint business in the region.

AVK will act as Rolls-Royce's strategic partner for turnkey, mission-critical power projects under the agreement. The companies plan closer coordination across product planning and market engagement.

The frameworks sit alongside an existing System Integrator Agreement between the firms. The new arrangements shift the relationship from individual project contracts to a more integrated, long-term alliance.

AVK specialises in power infrastructure for data centres and critical facilities in the UK and Europe. Rolls-Royce Power Systems supplies mtu-branded diesel and gas generators, as well as related technologies.

Both companies expect demand for backup and prime power systems in data centres to increase. Artificial intelligence workloads and higher-density computing are driving larger power requirements and tighter resilience standards across the sector.

Under the capacity framework, AVK receives guaranteed production slots for mtu Series 4000 generator sets. This is intended to give customers more certainty on delivery timelines for large-scale projects.

AVK has supplied hydrotreated vegetable oil (HVO)-ready generators in recent data centre schemes. Many operators are exploring alternative fuels and lower-carbon options for standby and continuous power.

Rolls-Royce is investing in gas-fuelled products and energy storage lines. The company aims to broaden its range beyond diesel-based units for applications that require lower emissions profiles.

The partners say the new agreement will align their respective product roadmaps more closely. They plan joint work on solutions for decarbonisation and resilience projects in critical power markets.

Vittorio Pierangeli, Senior VP Power Generation at Rolls Royce, said the capacity deal demonstrates shared commitment to the sector.

"We are pleased to have signed a Capacity Agreement and extended our System Integrator contract with AVK says Vittorio Pierangeli, Senior VP Power Generation at Rolls Royce. This agreement reflects the commitment from both parties to continue our collaboration and support the rapidly growing European Data Centre market. With this in place, we look forward to working closely together in the coming years."

Pierangeli said industry trends are shifting the technology mix for power systems.

"This is an exciting time for our industry, where innovation and collaboration are more important than ever. Technology shifts are accelerating, and the acceptance of alternative fuels is just one example of how the market is evolving. We are investing extensively to introduce our gas product range into this space, complementing our established diesel portfolio. With both diesel and gas solutions, as well as energy storage options, Rolls-Royce is uniquely positioned to meet future demands. Partners such as AVK will also be well placed to capitalize on these opportunities. We look forward to strengthening our partnership as the market continues to develop."

Ben Pritchard, CEO of AVK, described the deal as a milestone in the companies' long-running relationship. "This is not simply about growth. It's about a much stronger, more enduring collaboration. With Rolls-Royce one of our valued technology partners, we have both achieved impressive growth individually as well as in our work together. Driving growth in innovative solutions on an international scale, our joint projects can be seen succeeding across Europe. We're excited for this to develop even further."

Pritchard said the extended framework would underpin AVK's response to rising data centre demand. "Our relationship with Rolls-Royce has evolved in an exciting way and this new multi‐year capacity agreement secures access to equipment across the UK and Europe just as the data centre market is about to boom. The new framework puts us in a position where we have the industrial capacity to deliver technology in line with the growing demands of the market. This makes AVK a pivotal part of the coming energy transition. AVK and Rolls‐Royce are positioned to deliver more than equipment - together we will provide integrated, future‐proofed power solutions that combine industrial scale, sustainability and the delivery certainty required by today's mission‐critical operators."

The partners expect the combination of reserved manufacturing capacity and an extended integration agreement to underpin joint projects across UK and European data centre and critical power schemes through to 2031.