Hitachi Energy, a subsidiary of Hitachi Ltd, announced on 4 September what it is characterising as a ‘historic’ investment of more than $1 billion to increase the production of critical electrical grid infrastructure in the USA. These investments, among the largest seen in the electrical industry in the country, include approximately $457 million for a new large power transformer facility in South Boston, Virginia, along with significant expansions of existing facilities throughout the USA.
The investments will help to meet fast rising energy demand driven by AI data centres and is in line with the Trump administration’s White House AI Action Plan and promote domestic access to critical grid technologies. The move also supports the power needs of American manufacturing and other sectors and necessary grid expansion and modernisation efforts. Collectively, these investments are expected to create thousands of jobs, bolster electrical equipment supply chains in the USA, and contribute to the development of innovative technologies to enhance the security and “Prioritizing domestic production of transformers accelerates president Trump’s ‘energy dominance’ agenda by fortifying critical supply chains, strengthening US energy security, and ensuring our nation can meet the growing energy demand” said Jarrod Agen, executive director of the White House National Energy Dominance Council.
“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race. Bringing production of large power transformers to the US is critical to building a strong domestic supply chain for the economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging. Hitachi Energy is uniquely positioned to deliver critical power solutions for the American market,” said Andreas Schierenbeck, CEO of Hitachi Energy. “Our investments in expanding transformer manufacturing capacity – including at our new South Boston facility – are already creating good-paying American jobs, strengthening local communities, and reinforcing economic independence.”
Central to this investment plan is the establishment of a state-of-the-art manufacturing facility in South Boston, Virginia, to produce large power transformers, to be deployed in applications such as high-voltage transmission, power generation, AI data centres, and at large-scale industrial sites.
This facility will be built alongside Hitachi Energy’s existing campus and will be the largest manufacturing site for large power transformers in the United States. This facility alone will create more than 825 new jobs in Southside Virginia, offering long-term employment opportunities in engineering, advanced manufacturing, and operations roles.
These projects are part of a more than $9 bn USD global investment programme, the largest in the industry, under which Hitachi Energy is expanding its manufacturing capacity.
