Hitachi Energy, a subsidiary of Hitachi, has announced more than $1 billion in new U.S. manufacturing investments to expand the nation’s electrical grid infrastructure and meet soaring energy demand from AI-driven data centers. The plan, revealed on September 4, includes $457 million dedicated to building a new power transformer factory in South Boston, Virginia – the largest such facility in the United States.
The broader investment will expand existing Hitachi Energy operations nationwide and create thousands of jobs, bolstering domestic supply chains for critical grid equipment.
The announcement comes as the rapid growth of AI data centers intensifies strain on power networks. Large-scale AI training and inference require massive and stable energy inputs, which in turn depend on high-voltage transmission systems and large power transformers. By scaling up U.S. transformer production, Hitachi Energy aims to address a looming bottleneck that threatens to slow the buildout of data centers powering AI and cloud computing services.
Transformers are essential for managing the flow of electricity across high-voltage transmission lines, converting power for industrial applications, and ensuring stable energy delivery to hyperscale data centers. The new Virginia facility will add significant capacity to U.S. manufacturing of these components, which are currently in short supply due to rising global demand and constrained supply chains. More than 825 jobs are expected to be created at the site, ranging from advanced engineering and operations roles to skilled manufacturing positions.
The South Boston site will operate alongside Hitachi’s existing Virginia campus, anchoring what is projected to become the largest power transformer manufacturing operation in the country. Company executives emphasized that the investment is a strategic response to the dual challenges of expanding AI infrastructure and strengthening U.S. energy resilience.
“Power transformers are a linchpin technology for a robust and reliable electric grid,” said Andreas Schierenbeck, CEO of Hitachi Energy. “As demand for AI and cloud capacity accelerates, ensuring domestic production of these critical systems is essential to strengthening supply chains and reducing bottlenecks.”
Southside Virginia
Political leaders at both state and federal levels hailed the announcement as a transformative boost to U.S. energy independence and competitiveness in AI infrastructure. Virginia Governor Glenn Youngkin noted the direct economic impact on Southside Virginia, where more than 800 new jobs will be created, while Senators Mark Warner and Tim Kaine highlighted the facility’s role in reinforcing American energy security. U.S. officials tied the investment directly to the expansion of AI capacity, framing stable and scalable grid infrastructure as a prerequisite for leadership in the global AI race.
Hitachi executives also underscored the company’s global strategy. The Virginia project forms part of a $9 billion worldwide investment program aimed at expanding manufacturing capacity, R&D, and partnerships to deliver more resilient energy systems. By leveraging its expertise in operational technology, IT, and advanced electrification products, Hitachi Energy seeks to position itself as a central player in enabling the next generation of AI data centers.
Beyond its role in AI infrastructure, the investment will support broader grid modernization efforts in the U.S., ensuring more reliable energy delivery for manufacturing and other energy-intensive sectors. Sustainability will also play a role, with the new facilities designed to incorporate energy-efficient technologies and reduce environmental impact.
As AI adoption drives unprecedented growth in data processing and storage needs, the capacity to deliver secure, reliable, and scalable power will be critical. Hitachi Energy’s billion-dollar investment in U.S. transformer manufacturing reflects both the urgency of this challenge and the strategic importance of aligning grid infrastructure with the rapid expansion of AI data centers. For policymakers, energy executives, and data center operators alike, the initiative marks a pivotal step in strengthening the foundations of America’s digital economy.
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