US energy secretary Wright: Hitachi plans to invest $1 billion to expand U.S. power grid infrastructure manufacturing

US energy secretary Wright: Hitachi plans to invest $1 billion to expand U.S. power grid infrastructure manufacturing

In a significant move to bolster the U.S. energy infrastructure, Hitachi Energy, a subsidiary of Hitachi Ltd., has announced a historic investment of over $1 billion USD to expand the production of critical grid infrastructure in the United States. This investment, one of the largest in the electrical industry, includes approximately $457 million USD for a new large power transformer facility in South Boston, Virginia, and significant expansions of existing facilities across the country [1].

The investment aims to meet the skyrocketing energy demand driven by AI data centers, aligning with the Trump Administration’s White House AI Action Plan. This move supports the power needs of American manufacturing and other sectors, as well as grid expansion and modernization efforts. The project is expected to create thousands of jobs, strengthen U.S. supply chains, and contribute to the development of innovative technologies to enhance grid security and resilience [1].

The new facility in South Boston, Virginia, will be the largest manufacturing site for large power transformers in the United States. This facility alone will create more than 825 new jobs, offering long-term employment opportunities in engineering, advanced manufacturing, and operations roles. The project also includes a major workforce housing initiative to support the new employees [1].

Andreas Schierenbeck, CEO of Hitachi Energy, stated, “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 U.S. is critical to building a strong domestic supply chain for the U.S. economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging” [1].

This investment is part of a broader $9 billion USD global investment program by Hitachi Energy, focusing on expanding manufacturing capacity, R&D, engineering, and partnerships to power a more reliable, secure, and resilient energy system. The project underscores Hitachi Energy’s commitment to supporting American manufacturing and the rapid expansion of data centers driven by AI adoption [1].

The announcement has been welcomed by local and national officials, including Virginia Governor Youngkin, U.S. Senator Mark Warner, and U.S. Senator Tim Kaine, who highlighted the economic benefits and strategic importance of the project for the U.S. energy future [1].

References:
[1] https://www.hitachienergy.com/news-and-events/press-releases/2025/09/hitachi-announces-historic-1-billion-usd-manufacturing-investment-to-power-america-s-energy-future-through-production-of-critical-grid-infrastructure