Hitachi is making a $1 billion bet on America’s power infrastructure, announcing plans to expand its U.S. manufacturing footprint as electricity demand surges from the rapid growth of AI data centers. The investment, led by Hitachi Energy, comes as utilities and policymakers race to modernize a grid that is being stretched to historic limits.
The move aligns with the U.S. administration’s call to dramatically increase electricity supply to support artificial intelligence and other energy-intensive technologies. Chris Wright, U.S. Secretary of Energy, underscored the urgency of the initiative, noting:
“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.”
Expanding U.S. manufacturing capacity
Nearly half of the planned investment—around $457 million—will be used to build a new facility in South Boston, Virginia, dedicated to producing large power transformers. These transformers, which can be as big as a two-story home, are vital for transporting electricity across long distances. Once completed, the Virginia site will become the largest U.S.-based producer of such transformers, with operations expected to begin in 2028.
The project is a direct response to supply chain vulnerabilities that became evident during the pandemic, when shortages of transformers slowed down infrastructure projects worldwide. Andreas Schierenbeck, CEO of Hitachi Energy, emphasized that boosting local production is key to strengthening the U.S. domestic supply chain and removing bottlenecks that have hampered progress.
Beyond Virginia: wider investments
In addition to the Virginia facility, Hitachi is channeling funds into existing U.S. sites, including operations near Pittsburgh, Pennsylvania, where it manufactures electrical equipment such as breakers and switchgear. This U.S. expansion forms part of a broader global strategy: Hitachi has committed more than $9 billion worldwide to enhance its energy infrastructure capabilities.
A company spokesperson confirmed that Hitachi is working closely with the White House to accelerate permitting and support the rollout of new production capacity. The partnership reflects a growing recognition in Washington that energy infrastructure will play a decisive role in maintaining competitiveness in AI and advanced technology.
AI-driven demand reshaping energy priorities
The U.S. already hosts the world’s largest concentration of data centers, a footprint expected to triple electricity consumption in less than three years—up to 12% of domestic power supply. With AI workloads driving this surge, investments like Hitachi’s are becoming critical not just for business continuity, but for national competitiveness in the AI era.
By strengthening its U.S. production base, Hitachi is positioning itself at the center of this transformation—helping to secure the infrastructure backbone needed to power the next wave of digital innovation.