Amazon and WiWynn plan to expand Texas server rack facility to over $1.6 billion investment

Amazon and WiWynn Corporation are doubling down on a server rack and data center manufacturing facility in Socorro, Texas, with a cumulative investment now projected to exceed $1.6 billion. The expansion, announced on September 9, aims to dramatically increase domestic production of the physical infrastructure that powers cloud computing and AI workloads.

From $152 million to $1.6 billion in two years

WiWynn’s relationship with the Socorro site has scaled remarkably fast. The Taiwan-based server manufacturer initially invested $152 million in 2025, which created 514 jobs at the Socorro Logistics Center. That figure ballooned with an additional $275 million commitment in August 2026. Now, with the latest expansion plans, the total investment trajectory tops $1.6 billion.

The facility is expected to bring nearly 1,000 new advanced manufacturing jobs by the end of 2027. Total employment at the site is projected to exceed 2,500 by then, with full-capacity staffing eventually reaching approximately 4,000 workers.

Why Texas, why now

Amazon VP Gary Szilagyi emphasized the collaboration’s role in strengthening US supply chains. WiWynn’s Socorro facility is positioned to serve not just Amazon but other hyperscale clients as well.

Socorro’s proximity to the border also offers logistical advantages. Components and materials can move efficiently across supply chains that span North America, while the finished products stay firmly on US soil.

The AI infrastructure gold rush

WiWynn, a subsidiary of Taiwan’s Wistron Group, focuses on the design, manufacturing, and supply of high-performance servers for hyperscale data centers and AI applications. Its client roster includes Amazon Web Services, Meta, Microsoft, and Google. Until recently, the company had primarily operated out of facilities in Taiwan, Mexico, and Malaysia, transitioning into the US market in response to growing demand for domestically produced AI hardware and to mitigate risks posed by tariffs.

What to watch

The hiring timeline will be a key indicator of how quickly this expansion translates into real output. Reaching 2,500 employees by end of 2027 is ambitious but achievable given the facility’s track record of scaling from its initial 514-person workforce. The bigger question is whether the facility hits its full-capacity target of 4,000 workers.

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