Southwire has broken ground on a more than $256 million expansion of its Starkville, Mississippi, manufacturing campus as demand for electrical infrastructure rises with electrification and data center construction.
The project will add approximately 380,000 square feet to the existing campus and create about 130 jobs, according to Southwire and the Mississippi Development Authority.
The October 1 groundbreaking moved the project from development into construction after Mississippi officials announced the expansion in August. Southwire expects the additional manufacturing capacity to reach full capacity in 2028.
Gray is serving as the design-build contractor. Its work includes demolishing two existing structures totaling roughly 40,000 square feet before constructing the new manufacturing space.
The project is part of Southwire’s broader investment of more than $2 billion to modernize its manufacturing footprint.
The new facility will include a six-story tower for the extrusion process used to jacket copper wire.
The extrusion operation is part of the manufacturing process that produces finished wire and cable products used in electrical applications. Expanding that capacity gives Southwire additional manufacturing space as demand increases across utility, industrial and construction markets.
Gray’s design also includes sustainability features. The facility is targeting LEED Silver certification and will include a rainwater collection system for gray-water reuse.
The design will also allow for future solar installations.
Southwire plans to keep its existing Starkville operations running while construction proceeds, allowing production to continue during the campus expansion.
At peak construction, nearly 250 workers are expected on site.
Data Centers Are Changing Electrical Infrastructure Demand
The Starkville project is notable because Southwire directly links the expansion to changes in electricity demand.
The company has identified electrification, market growth and the rapid expansion of data centers among the factors driving its need for additional manufacturing capacity.
Data centers require extensive electrical systems from the utility connection to equipment inside the buildings. That creates demand for conductors and cables alongside transformers, switchgear, substations and transmission infrastructure.
The construction of new generation to serve large computing loads adds another layer of demand.
This creates a broader industrial investment cycle. Companies supplying the electrical infrastructure are expanding their own factories while utilities and developers build the systems needed to deliver power to new loads.
Cleveland-Cliffs is addressing another part of that chain at Butler Works in Pennsylvania. Its $200 million project will increase production of grain-oriented electrical steel used in transformer cores, with capacity expected to rise by as much as 25%. The Butler Works expansion and Southwire’s Starkville project therefore represent different stages of the same larger buildout: one increases the supply of a transformer material, while the other adds capacity for wire and cable used in electrical systems.
Gray Leads Starkville Construction
Gray’s design-build scope starts with demolition of the two existing structures before moving into construction of the new manufacturing area.
The six-story extrusion tower will become one of the defining components of the expanded campus, supporting Southwire’s copper-wire manufacturing operations.
Southwire’s existing plant will remain operational during the work, making construction sequencing an important part of the project.
The company expects the expanded facility to reach full capacity in 2028. The timing puts the project on a similar horizon to other electrical-manufacturing investments responding to rising U.S. power demand.
The Mississippi Development Authority said the project represents the largest single economic development project in Starkville and will add roughly 380,000 square feet to the city’s industrial base. The state approved assistance through its Mississippi Flexible Tax Incentive program, while Starkville and Oktibbeha County are also supporting the expansion.
Project Timeline
With groundbreaking complete, Southwire’s Starkville expansion has entered its construction phase.
The project will expand an existing manufacturing campus rather than establish a new industrial site, allowing Southwire to add capacity while maintaining current operations.
The company expects the expanded facility to be fully operational at capacity in 2028.
For the construction industry, the project provides another indication that the data center boom is affecting more than data center buildings themselves. Rising electricity demand is pushing investment into the manufacturing facilities that supply the wire, cable, transformer materials and other components needed to expand the U.S. power system.
Project Factsheet: Southwire Starkville Manufacturing Expansion
- Location: Starkville, Mississippi
- Owner: Southwire
- Design-build contractor: Gray
- Investment: More than $256 million
- Expansion: Approximately 380,000 square feet
- New jobs: Approximately 130
- Peak construction workforce: Nearly 250 workers
- Major scope: New manufacturing space and six-story extrusion tower
- Demolition: Approximately 40,000 square feet across two existing structures
- Certification target: LEED Silver
- Sustainability features: Rainwater collection and provisions for future solar
- Latest milestone: Groundbreaking on October 1, 2026
- Expected full capacity: 2028
- Primary demand drivers: Electrification, market growth and data center expansion
- Broader investment: Part of Southwire’s more than $2 billion modernization commitment
Leave a Reply