Hitachi to invest $1 billion in America’s grid infrastructure

Hitachi Energy, a wholly owned subsidiary of Hitachi Ltd., has announced a historic investment of more than USD 1 billion 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 US, include approximately USD 457 million for a new large power transformer facility in South Boston, Virginia, along with significant expansions of existing facilities throughout the country, according to a media release.

The investments will help meet skyrocketing energy demand driven by AI data centers in line with the Trump administration’s White House AI Action Plan and 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 US, and contribute to the development of innovative technologies to enhance the security and resilience of the US grid, the company said 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.”  

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.