Hitachi Energy US grid infrastructure investment for AI data centers : Hitachi Energy announces a historic $1.5B+ investment to expand US power grid infrastructure, including a new $457M transformer factory in Virginia. This critical move supports soaring energy demand from AI data centers, creates jobs, and boosts national energy security.
VIRGINIA / U.S. – In a monumental move to fortify the backbone of American energy Hitachi Energy a global leader in electrification, has announced an investment exceeding $1.5 billion to dramatically expand its manufacturing of critical electrical grid equipment in the United States. This massive investment one of the largest the electrical industry has seen is a direct response to the nation’s skyrocketing energy demands largely fueled by the explosive growth of artificial intelligence (AI) data centers.
The cornerstone of this initiative is a new state-of-the-art $457 million facility in South Boston, Virginia dedicated to producing large power transformers (LPTs)—the massive essential components that regulate voltage for efficient long-distance power transmission. This new plant which will be the largest of its kind in the U.S.will be complemented by significant expansions at existing Hitachi Energy facilities across the country.
Addressing a National Need: Energy for AI and Reindustrialization
The announcement underscores a critical national priority: modernizing and expanding the U.S. power grid to keep pace with the future. The energy hunger of new AI data centers combined with a push for domestic manufacturing (“reindustrialization”), is placing unprecedented strain on a grid that requires urgent modernization.
This Hitachi Energy US grid infrastructure investment for AI data centers is strategically designed to:
- Bolster Domestic Supply Chains: By producing large power transformers domestically the U.S. reduces its reliance on overseas imports, strengthening national energy security and mitigating supply chain bottlenecks.
- Create High-Paying Jobs: The Virginia facility alone is projected to create over 825 new long-term jobs in engineering, advanced manufacturing, and operations providing a significant economic boost to Southside Virginia.
- Enhance Grid Resilience: Modernizing grid infrastructure with advanced technology is essential for improving the security and reliability of the U.S. power system against growing demands and potential disruptions.
A Unanimous Vote of Confidence from Leadership
The investment has received strong bipartisan support from federal and state officials highlighting its national significance.
U.S. Energy Secretary Chris Wright stated, “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.”
Virginia Governor Glenn Youngkin celebrated the decision, calling the 825 new jobs “transformational for Southside Virginia.” He also announced a complementary workforce housing project to support the new employees moving to the region.
Andreas Schierenbeck, CEO of Hitachi Energy, emphasized the company’s role, stating, “Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race… At Hitachi Energy, we are deeply grateful for the leadership and support that came together to make this critical production capacity possible.”
What This Means for America’s Energy Future
The Hitachi Energy US grid infrastructure investment for AI data centers is more than a single corporate expansion; it signals a larger wave of critical investment in American energy independence. By building the most advanced electrical manufacturing capacity on home soil, Hitachi Energy is providing the essential infrastructure needed to power not just the AI revolution, but also the next generation of American manufacturing, ensuring the grid can meet the demands of the 21st century.
Production at the new Virginia facility is expected to begin in the coming years, marking a pivotal step toward a more secure, resilient, and powerful American energy grid.
