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Released September 30, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As the U.S. faces the need for more distribution transformers to power the country's energy future, especially for electric utilities and artificial intelligence (AI) data centers, Industrial Info is tracking $1.85 billion worth of projects related to transformer manufacturing in the U.S.--with about 35% of the spend attributed to leading electrification company Hitachi Energy (Tokyo, Japan).
Hitachi earlier this month announced more than $1 billion worth of investment to "expand the production of critical electrical grid infrastructure in the United States," including $457 million for a new large power transformer-manufacturing plant in South Boston, Virginia, in addition to "significant expansions" of existing facilities. The transformers will support high-voltage transmission, power generation, AI data centers and large-scale industrial applications, according to the company.
The plant will be built alongside an existing campus and will be the biggest large power transformer-manufacturing plant in the U.S. when it becomes operational in 2028. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the project report.
"Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race," said Andreas Schierenbeck, chief executive officer of Hitachi, in the press release. "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."
Hitachi said the investments will help meet energy demand driven by AI data centers, in alignment with the Trump Administration's AI Action Plan--a set of policy goals announced in July that includes expediting and modernizing permits for data centers.
"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," said Jarrod Agen, executive director of the White House National Energy Dominance Council.
Other Hitachi efforts include a project aimed at boosting the transformer supply chain: a $106 million expansion of its plant in Alamo, Tennessee that produces transformer components. According to a company press release, the expansion "will significantly boost production of transformer bushings, including dry bushings for high-voltage direct current (HVDC) and alternating current (AC) transmission systems up to 800 (kilovolts) kV." The site is expected to be operational in mid-2027.
Transformer bushings are electrical insulation components that provide a pathway for electrical current to enter and exit the transformer.
Meanwhile, a $80 million project at its Jefferson City Heavy Duty Electric Transformers plant in Missouri, which entails adding one or two new assembly lines to scale up production and strengthen supply chains, is expected to wrap up in mid-2026.
Subscribers can read more information on the Tennessee and Missouri projects.
A November 2024 report prepared by the National Renewable Energy Laboratory (NREL) for the U.S. Department of Energy analyzed domestic supply of and demand for distribution transformers. The study found that the demand for transformers has increased for two major reasons: new customers, including large-load customers such as data centers, and overall aging of in-service transformers.
NREL estimated that about 55% of in-service units are more than 33 years old and approaching end of life. "Modeling suggests annual capacity requirements will far outpace increases in the number of units required each year."
"Cumulatively, data center demand may add between 12.6 and 72 GW [gigawatts] of transformer capacity (for power delivery units) from now until 2030."
"Required in-service transformer capacity in 2050 will be between 160% and 260% of 2021 levels, with annual transformer capacity demand increasing between 140% to more than 250% depending on the scenario ... Utility planning practices--i.e., like-for-like replacement vs. proactive upsizing--are expected to have major impacts on national demand."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Hitachi earlier this month announced more than $1 billion worth of investment to "expand the production of critical electrical grid infrastructure in the United States," including $457 million for a new large power transformer-manufacturing plant in South Boston, Virginia, in addition to "significant expansions" of existing facilities. The transformers will support high-voltage transmission, power generation, AI data centers and large-scale industrial applications, according to the company.
The plant will be built alongside an existing campus and will be the biggest large power transformer-manufacturing plant in the U.S. when it becomes operational in 2028. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the project report.
"Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race," said Andreas Schierenbeck, chief executive officer of Hitachi, in the press release. "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."
Hitachi said the investments will help meet energy demand driven by AI data centers, in alignment with the Trump Administration's AI Action Plan--a set of policy goals announced in July that includes expediting and modernizing permits for data centers.
"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," said Jarrod Agen, executive director of the White House National Energy Dominance Council.
Other Hitachi efforts include a project aimed at boosting the transformer supply chain: a $106 million expansion of its plant in Alamo, Tennessee that produces transformer components. According to a company press release, the expansion "will significantly boost production of transformer bushings, including dry bushings for high-voltage direct current (HVDC) and alternating current (AC) transmission systems up to 800 (kilovolts) kV." The site is expected to be operational in mid-2027.
Transformer bushings are electrical insulation components that provide a pathway for electrical current to enter and exit the transformer.
Meanwhile, a $80 million project at its Jefferson City Heavy Duty Electric Transformers plant in Missouri, which entails adding one or two new assembly lines to scale up production and strengthen supply chains, is expected to wrap up in mid-2026.
Subscribers can read more information on the Tennessee and Missouri projects.
A November 2024 report prepared by the National Renewable Energy Laboratory (NREL) for the U.S. Department of Energy analyzed domestic supply of and demand for distribution transformers. The study found that the demand for transformers has increased for two major reasons: new customers, including large-load customers such as data centers, and overall aging of in-service transformers.
NREL estimated that about 55% of in-service units are more than 33 years old and approaching end of life. "Modeling suggests annual capacity requirements will far outpace increases in the number of units required each year."
"Cumulatively, data center demand may add between 12.6 and 72 GW [gigawatts] of transformer capacity (for power delivery units) from now until 2030."
"Required in-service transformer capacity in 2050 will be between 160% and 260% of 2021 levels, with annual transformer capacity demand increasing between 140% to more than 250% depending on the scenario ... Utility planning practices--i.e., like-for-like replacement vs. proactive upsizing--are expected to have major impacts on national demand."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
