Investments in U.S. Transformer Manufacturing Aim to Meet Surging Demand

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

The U.S. needs more transformers to power the country's energy future, and Industrial Info Resources is tracking about $2 billion worth of capital projects related to transformer manufacturing in the U.S. Most of the spend is attributed to plant expansions under construction.

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Transformers are Crucial

As the U.S. faces the need for more transformers to power the country's energy future, Industrial Info Resources data show about $2 billion worth of capital projects related to transformer manufacturing in the U.S. Most of the spend is attributed to plant expansions under construction.

The project activity includes power, specialty and distribution transformers. Specialty transformers serve specific industrial or appliance functions; power transformers manage ultra-high voltages in transmission networks (moving power from generating stations to substations); and distribution transformers step down transmission/substation voltages to lower levels for residential, commercial and industrial applications.

Most of the investment is attributed to power transformers.

This comes at a critical time for grid infrastructure development amid growing power demand from electric utilities, data centers and more.

According to an April 2026 report from the non-partisan Congressional Research Service (CRS), "distribution transformers do not present the same challenge to electric grid security as large power transformers, which serve many thousands of customers and are a single-point vulnerability."

But production of both types in the U.S. market is needed. An August 2025 report from Wood Mackenzie noted imports account for roughly 80% of U.S. power transformer supply and 50% of distribution transformer supply. Both types are facing long lead times: up to two years for distribution transformers and up to four years for power transformers.

The need for more production capacity is driving plant expansions, including those from original equipment manufacturers (OEMs) in the U.S. market such as Hitachi Energy USA, Prolec GE (GE Vernova subsidiary) and Hyundai Power Transformers USA (HD Hyundai Electric subsidiary).

U.S. Transformer Manufacturing Projects

Hitachi Energy USA is responsible for an expansion under construction worth $457 million, which is part of its parent company's plan to invest $1 billion to "expand the production of critical electrical grid infrastructure in the United States."

The project will add space for producing large-power transformers at its manufacturing site in South Boston, Virginia. This will be the biggest large power transformer-manufacturing plant in the U.S. when it becomes operational in 2028. Industrial Info Resources offers more information on the project in its Global Market Intelligence (GMI) Industrial Manufacturing Project Database, where readers can find details--including construction schedules, investment values and necessary equipment in a project report.

Meanwhile, Hyundai Power Transformers USA is in the process of expanding its transformers plant in Montgomery, Alabama. The $200 million project is aimed at increasing production of extra high-voltage power transformers by 50% and adding manufacturing and testing capabilities for 765-kilovolt transformers intended to support the U.S. transmission network. Construction is expected to wrap up next year. Readers can view the project report.

Also in the GMI database is Prolec GE's $150 million expansion of its Goldsboro Power Transformers plant in North Carolina. The project is designed to double production capacity of medium-power transformers to 420 units per year by constructing and equipping a new building. Production could begin in 2028. View the project report here.

View a list of detailed reports for active and proposed capital projects across the U.S. related to transformer manufacturing.

Key Takeaways

• About $2 billion: value of capital projects in support of U.S. transformer manufacturing.
• More power transformers (moving power through transmission networks) and distribution transformers (stepping down voltage to transmit power to customers) are key to a strong power grid.
• The U.S. imports roughly 80% of U.S. power transformer supply and 50% of distribution transformer supply.

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About Industrial Info Resources
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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).