Hitachi Energy, a subsidiary of Hitachi, Ltd., has announced an investment of over $1 billion to expand the production of critical electrical grid infrastructure across the United States.
The commitment, one of the largest in the U.S. electrical industry, includes approximately $457 million for a new large power transformer manufacturing facility in South Boston, Virginia, alongside major expansions of existing facilities nationwide.
The investment aims to address the surging energy demand driven by the proliferation of AI data centers, align with national AI action plans, and enhance domestic access to crucial grid technologies. This initiative is expected to create thousands of jobs, strengthen US electrical equipment supply chains, and foster the development of innovative technologies to improve the security and resilience of the national grid.
South Boston facility: A hub for power transformers
Central to this investment plan is the establishment of the South Boston, Virginia, manufacturing facility. This new plant will be built adjacent to Hitachi Energy’s existing campus, becoming the largest manufacturing site for large power transformers in the U.S.
The facility will play a vital role in supporting applications such as high-voltage transmission, power generation, AI data centers, and large-scale industrial projects. It is projected to create over 825 new jobs in Southside Virginia, offering long-term opportunities in engineering, advanced manufacturing, and operations.
This U.S.-focused investment is part of a broader global investment program by Hitachi Energy exceeding $9 billion, aimed at expanding manufacturing capacity, R&D, engineering, and partnerships to build a more reliable, secure, and resilient energy system worldwide.
Thought leadership:
Chris Wright, Energy Secretary, commented on the investment, stating, “If we are going to win the AI race, reindustrialize, and keep the lights on, America is going to need a lot more reliable energy. Thankfully, Hitachi is delivering. The Trump administration looks forward to continuing to partner with private industry to ensure the American people have access to affordable, reliable, and secure energy and thousands of high-paying jobs.”
Toshiaki Tokunaga, President & CEO, Hitachi, highlighted the strategic importance of the US market: “The United States is a key market for Hitachi, and this investment reflects our commitment to powering America’s energy future to meet the accelerating demands for reliable and sustainable solutions to benefit the nation. Leveraging our expertise in IT, operational technology, and advanced products, we are supporting American manufacturing, the development of critical infrastructure, and the rapid expansion of data centers driven by AI adoption.”
Andreas Schierenbeck, CEO, Hitachi Energy, emphasized the critical role of power transformers: “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 US economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging. As the global leader in electrification, Hitachi Energy is uniquely positioned to deliver critical power solutions for the American market.”
