Trump administration-backed investment answers surging demand for transformers and high-voltage equipment needed to support AI data center expansion -- $457 million USD is dedicated to a new power transformer factory in Virginia, the largest such facility in the U.S., with the support of Governor Youngkin and the Commonwealth's congressional delegation -- Investments will create thousands of high-paying jobs in communities throughout the U.S. and expand local supply chains
Raleigh, North Carolina and Zurich, Switzerland, Sept. 04, 2025 (GLOBE NEWSWIRE) -- Hitachi Energy, a wholly owned subsidiary of Hitachi, Ltd., and global leader in electrification, today announced a historic investment of more than $1 billion USD to expand the production of critical electrical grid infrastructure in the United States. These investments, among the largest seen in the electrical industry in the U.S., include approximately $457 million USD for a new large power transformer facility in South Boston, Virginia, along with significant expansions of existing facilities throughout the country.
The investments will help meet skyrocketing energy demand driven by AI data centers in line with the Trump Administration's White House AI Action Planand promote domestic access to these critical grid technologies. This move also supports the power needs of American manufacturing and other sectors and much-needed grid expansion and modernization efforts. Collectively, these investments will create thousands of jobs, bolster electrical equipment supply chains in the U.S., and contribute to the development of innovative technologies to enhance the security and resilience of the U.S. grid.
"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 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 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. This momentum is driven by President Donald Trump's bold, pro-energy policies that are reigniting the American economy and powering the next generation of critical AI data centers with reliable, American-made energy."
"Prioritizing domestic production of transformers accelerates President Trump's energy dominance agenda by fortifying critical supply chains, strengthening U.S. energy security, and ensuring our nation can meet the growing energy demand. Investments like this are essential to powering AI infrastructure and advancing President Trump's leadership in the global AI race," said Jarrod Agen, Executive Director of the White House National Energy Dominance Council.
"Thank you, Hitachi Energy, for trusting Virginia, again! 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 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."
Governor Youngkin continued: "We are also proud to announce a major workforce housing project to support Hitachi's new employees. We are partnering with Halifax County and Virginia Housing to build 96 new homes supported by a grant from the Virginia Workforce Housing Investment Program."
"Particularly at this critical moment for our growing energy demands, I'm excited to see Hitachi Energy expand their Virginia footprint, create hundreds of good-paying jobs in South Boston, and promote American energy security," said U.S. Senator Mark Warner. "At the local level, this is a great investment in Southside Virginia's economy and manufacturing industry. 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. I'm thrilled to see Hitachi Energy bring this important project home to South Boston."
"In August, I visited Hitachi's facility in Bland to learn about the company's cutting-edge work. I'm thrilled that Hitachi Energy is expanding its footprint in Virginia by investing $457 million to build a state-of-the-art power transformer facility in South Boston - creating more than 800 jobs and boosting the region's economy," said U.S. Senator Tim Kaine. "Virginia's workforce, educational opportunities, and innovative spirit have made it a great place to do business, and I look forward to continuing to partner with Hitachi to boost domestic manufacturing in the Commonwealth."
"A vigorous and reliable electric grid is critical for the American economy and American energy dominance. Bringing power transformer production to the U.S. is vital as energy demand skyrockets," said Congressman John McGuire (VA-05). "I am thankful that this investment will establish a state-of-the-art manufacturing facility in South Boston, to produce necessary large power transformers. This $457 million investment and facility will create more than 800 new high-paying jobs in Virginia's Fifth Congressional District. I would like to thank Hitachi, President Trump, and Governor Youngkin for working with me to make this a success."
"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. 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," said Toshiaki Tokunaga, President & CEO of Hitachi.
"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. 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. At Hitachi Energy, we are deeply grateful for the leadership and support of the Trump administration, Governor Youngkin, Virginia's General Assembly, and the Commonwealth's congressional delegation, who came together to make this critical production capacity possible to power our energy future."
Central to this investment plan is the establishment of a state-of-the-art manufacturing facility in South Boston, Virginia, to produce large power transformers, which support applications like high-voltage transmission, power generation, AI data centers, and large-scale industrial applications.
This facility will be built alongside Hitachi Energy's existing campus and will be the largest manufacturing site for large power transformers in the United States. This facility alone will create more than 825 new jobs in Southside Virginia, offering long-term employment opportunities in engineering, advanced manufacturing, and operations roles.
These projects are part of a more than $9 billion USD global investment program, the largest in the industry, under which Hitachi Energy is expanding its manufacturing capacity, R&D, engineering, and partnerships to power the world's energy system to be more reliable, secure, and resilient.
About Hitachi Energy
Hitachi Energy is a global technology leader in electrification, powering a sustainable energy future with innovative power grid technologies with digital at the core. Over three billion people depend on our technologies to power their daily lives. With over a century in pioneering mission-critical technologies like high-voltage, transformers, automation, and power electronics, we are addressing the most urgent energy challenge of our time - balancing soaring electricity demand, while decarbonizing the power system. With an unparalleled?installed base in over 140 countries,?we co-create and build long-term partnerships across the utility, industry, transportation, data centers, and infrastructure sectors. Headquartered in Switzerland, we employ over 50,000 people in 60 countries and generate revenues of around $16 billion USD.
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