Hitachi Energy to Invest Over $1 Billion in U.S. Grid Expansion

In a significant move to fortify the United States' electrical grid infrastructure, Hitachi Energy, a division of Hitachi Ltd., has unveiled plans to invest over USD 1 billion. This venture marks one of the most substantial investments in the U.S. electrical industry to date.

Among the planned investments, approximately USD 457 million will be allocated to establish a new power transformer manufacturing facility in South Boston, Virginia. Additional funds will go toward expanding existing facilities nationwide, according to a company media release.

These initiatives aim to address the growing energy demands fueled by AI data centers, aligning with the Trump administration's White House AI Action Plan. This expansion is designed to ensure domestic access to essential grid technologies.

This strategic investment not only supports the energy needs of American manufacturing and other sectors but also facilitates vital grid expansion and modernization. Collectively, these efforts will generate thousands of jobs, strengthen U.S. electrical equipment supply chains, and promote innovative technologies enhancing the grid's security and resilience, as stated in the media release.

“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,” said US Energy Secretary Chris Wright. “Thankfully, Hitachi is delivering. The Trump administration looks forward to continuing to partner with private industry to ensure the American people access to affordable, reliable, and secure energy and thousands of high-paying jobs.”

"To lead in AI, America must lead in energy, and this investment proves we’re doing just that,” said US Secretary of the Interior Doug Burgum. “Hitachi Energy’s historic investment in U.S. grid infrastructure is more than a single partnership, it signals a growing wave of investment in American energy.”

“Hard-working Virginians and a business friendly environment are what first brought Hitachi Energy to the Commonwealth. Now, after years of success here, they are doubling down on that decision with this landmark investment in South Boston,” said Virginia Governor Glenn Youngkin. “Eight-hundred and twenty-five new jobs will be transformational for Southside Virginia, as will the power transformers those new hires are set to build. These transformers are critical to our Nation’s electrical grid and will be built right there in Virginia.”

“At the local level, this is a great investment in Southside Virginia’s economy and manufacturing industry,” said Senator Mark Warner. “At the state and national level, this is an important strategic step to ensure we have the power needed to service our communities, businesses, and growing AI industry.”

“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,” said Toshiaki Tokunaga, President & CEO of Hitachi. “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.”

“As the global leader in electrification Hitachi Energy is uniquely positioned to deliver critical power solutions for the American market,” said Andreas Schierenbeck, CEO of Hitachi Energy. “Our investments in expanding U.S. transformer manufacturing capacity—including at our new South Boston facility—are already creating good-paying American jobs, strengthening local communities, and reinforcing economic independence.”

A key component of this investment strategy is the new advanced manufacturing plant in South Boston, Virginia. This facility will produce large power transformers vital for high-voltage transmission, power generation, and AI data centers, among other major industrial applications.

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