The logo of Hitachi is seen at an office building in Zurich, Switzerland September 10, 2020.
The U.S. currently hosts the largest concentration of data centers worldwide. Their energy consumption is projected to triple within three years, accounting for about 12% of the nation’s electricity use. This surge in demand has led utilities to accelerate upgrades to the country’s electrical grid, which has seen limited investment in recent decades.
U.S. Energy Secretary Chris Wright highlighted the significance of reliable energy supply, stating: “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. Thankfully, Hitachi is delivering.”
Nearly half of the new investment, around $457 million, will fund a new manufacturing facility in South Boston, Virginia. This site will produce large power transformers, essential components for electricity transmission. Hitachi noted that the facility, set to begin construction this year and expected to start operations by 2028, will be the largest U.S. producer of such transformers, which can be as large as two-story homes.
Andreas Schierenbeck, CEO of Hitachi Energy, emphasized: “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.” Transformers have remained in short supply since the COVID-19 pandemic disrupted global logistics, highlighting the need for stronger domestic production capacity.
In addition to the Virginia project, Hitachi will also increase investment in its facilities near Pittsburgh, Pennsylvania. The company already produces various electrical components in the United States, including breakers and switchgear.
These U.S. investments are part of Hitachi’s broader global strategy, which includes more than $9 billion aimed at expanding its manufacturing capacity worldwide. A Hitachi spokesperson confirmed that the company has received a commitment from the White House to help expedite development of new power component production facilities. The spokesperson also noted that Hitachi is working closely with the White House on other initiatives, though without providing further details.
Through these initiatives, Hitachi is strengthening its presence in the U.S. energy sector while addressing the growing demand for stable electricity supply. With the expansion of AI and other energy-intensive technologies, the company’s investment marks a significant step toward modernizing infrastructure and supporting future industrial growth.
