An inside tour of Lenovo’s North Carolina AI server manufacturing line expansion — Chinese firm expanding US-native production to meet exploding demand
We recently toured China-based Lenovo’s new production facilities here in the US. Lenovo is the number one player in the global PC market (by shipments), with products spanning consumer, business, and enterprise sectors. But while Lenovo is a Chinese-based company, it has a significant business presence in the United States. Its U.S. headquarters, which opened in 2005, is in Morrisville, NC, right in the heart of the Research Triangle Park. The company also opened its first PC manufacturing line, a short drive away in Whitsett, NC, shortly after.
This past Friday, Lenovo took the latest step in its efforts to expand its U.S. manufacturing presence with a symbolic ribbon-cutting for the expansion of manufacturing at its Whitsett facility. The company invested millions of dollars into the facility, doubling its footprint to 890,000 square feet. There are currently 400 line workers, with the capacity to expand that number to 1,000 in the near future.
It doesn’t take a rocket scientist to understand why Lenovo is making this investment, as it comes down to two words: artificial intelligence.
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Lenovo in Whitsett
As Ashley Gorakhpurwalla, Executive VP and President for the Infrastructure Solutions Group, explained, for many of Lenovo’s customers, “AI is moving from the hype cycle now into the hero cycle.” With many of its customers looking to increase reliance on U.S.-produced hardware, an “infrastructure they can trust is going to be the catalyst for that.” So, it only made sense to tap into resources and the local community it has fostered over the past two decades
“Because behind every AI breakthrough, it’s powerful, powerful infrastructure,” Gorakhpurwalla continued. “As technology becomes more advanced, I think that building high-quality infrastructure closer to our customers is becoming more important than ever.”
North Carolina might not always have been at the forefront of people’s minds when it comes to technological leadership, and it’s a question that Ben Massey, VP Supply Chain for Lenovo, has often fielded. “You know, people ask me all the time, how are you going to make that work in North Carolina?” Massey explained. “The way it’s going to work is that we’ve got an arc from the Triangle to the Triad with thousands of engineers, thousands of manufacturing people in R&D who can work in supply chain, people who can all work together to bring this technology together with speed. Faster product development to mass production, shorter customer lead times, and greater end-to-end cost efficiency.”
Lenovo’s main U.S. R&D hub in Morrisville is just over an hour’s drive away from the Whitsett facility along Interstate 40. In addition, the company can pull young talent from nearby universities like NC State, Duke, UNC-Chapel Hill, and Wake Forest, along with the state’s robust community college system.
Lenovo and its local contractors were able to take the facility from an empty warehouse to a fully functioning server production line in nine months. That included the necessary electricity capacity (up to 20 MW) from Duke Energy.
By the Numbers
I was given a full tour of the Whisett manufacturing facility (along with other members of the press, Lenovo dignitaries, and local lawmakers), from start to finish. It was an impressive operation; one that I wish I could express to you in photos. However, photos and videos were strictly forbidden due to the proprietary nature of the hardware and testing equipment, and to protect Lenovo’s customers’ privacy.
The kitting area, where the components like processors, memory, and storage are assembled, encompasses 26,000 square feet. There are 10 kitting lines, where workers currently assemble 200 racks per week, with the capability to double that number to 400. The 50 team members in this area process over 150,000 parts per day.
There are currently seven assembly lines, residing in a space roughly double the size of the kitting area (53,000 square feet). Lenovo has the capacity to produce 1,400 server nodes per day across 28 assembly stations (one server is produced every 60 seconds).
At full tilt, Lenovo says that it will have 1,000 operators running three shifts. However, there are currently around 380. Employees get roughly 1,000 hours of training, and they rotate throughout different phases of the building process to hone their skills.
After touring the kitting and assembly lines, we moved into the testing areas, where L10 testing takes place. There are 10 thermally controlled testing pods, with 16 test racks per pod. The room is chilled using massive Computer Room Air Handlers (CRAH), each with 1 MW of cooling capacity.
In addition, there are 30 Vertiv Liebert XDU direct liquid cooling units (expandable to 50), each with a capacity of up to 300 kW, to aid with testing finished packages for customers. Lenovo explained that Nvidia GB300 racks consume 140 kW, while Vera Rubin will consume 230 kW at peak load. For comparison, the average U.S. household consumes between 1 and 1.5 kW per day. That’s a lot of power coming from a rack measuring 18 inches across and seven feet tall. Lenovo’s first taste of Vera Rubin is said to be making its way to the Whitsett facility by the end of August.
We also toured where the massive freshwater pipes enter the building to fuel the cooling operations, along with the utility room, where the impressive overhead electrical conduits feed power into the site from a nearby substation. Working with Duke Energy, Lenovo was able to go from temporary power at the site to full power within 7 months.
Closing Thoughts
I’m not a native to this state; however, I’ve lived in central NC for 40 of my 46 years on this earth. So it was rather impressive to see the Whitsett facility taking shape roughly 20 minutes from my childhood home. However, the sense of pride was also clouded by the realities of the times that we live in. The proliferation of AI in nearly every facet of our lives is the entire impetus behind the need to expand server manufacturing capacity for the homeland. Companies like Google, Microsoft, OpenAI, and others crave the computing hardware necessary to feed AI demands, which in turn is driving a wedge between big tech and local communities. From strains on local water supplies and power grids to the acquisition of land to build new data centers, we’re at a real crossroads where local communities, local governments, and big tech companies are each looking to have a say in how our future plays out.
