Hitachi Energy to Invest $1bn into US Grid Infrastructure

Hitachi Energy has announced a $1 billion investment to scale up its grid infrastructure manufacturing footprint in the US, addressing the power demand from the AI data center sector. Nearly half of the investment, $475 million, is earmarked for the construction of a new power transformer manufacturing facility in South Boston, Virginia. 

The facility will be built alongside Hitachi’s existing campus, creating more than 825 jobs in the region, the company said. It went on to stress the support of “the Trump administration, Governor Youngkin, Virginia’s General Assembly, and the Commonwealth’s congressional delegation” in supporting the construction of the new facility.

“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,” said Andreas Schierenbeck, CEO of Hitachi Energy. 

In addition, Hitachi intends to expand its breaker and switchgear manufacturing operations near Pittsburgh, Pennsylvania, to further solidify its US footprint. The investment is part of a broader $9bn global investment plan by Hitachi to expand its energy and manufacturing capacity worldwide. As part of its commitment to the US market, Hitachi has secured assurances from the White House to expedite new US power component manufacturing projects.