Hitachi Energy Pledges $1B to Strengthen US Grid, Build Largest Transformer Plant in Virginia

Rising AI, EV, and industrial power demands strain the US grid. Hitachi Energy boosts transformer output to secure reliable energy for America’s future.

Hitachi Energy, a subsidiary of Japan’s Hitachi Ltd., announced on Thursday that it will invest $1 billion to expand its US manufacturing of grid equipment, describing it as a landmark step for the nation’s power sector.

At the heart of the plan is a $457 million transformer factory in South Boston, Virginia, which is expected to become the nation’s largest site producing large-scale power transformers. These units are essential for transmitting electricity over long distances and supporting high-demand applications, including electricity transmission, power generation, AI data centers, and industrial uses.

The investment comes amid growing strain on the country’s electric grid. Rising energy use from AI data centers, the shift to electric vehicles, and industrial expansion have pushed demand higher ...