Hitachi Energy has announced a historic $1 billion investment to expand the production of critical electrical grid infrastructure in the United States. The initiative, unveiled September 4, will help meet surging energy demand fueled by the rapid growth of AI data centers and broader grid modernization needs.
Central to the plan is a $457 million commitment to build a new state-of-the-art large power transformer facility in South Boston, Virginia. The site, set to become the largest of its kind in the U.S., will create more than 825 new jobs in Southside Virginia. Governor Glenn Youngkin welcomed the announcement, calling it “transformational” for the region, and revealed a workforce housing project to support new employees.
The Trump administration strongly backed the investment, highlighting its role in advancing the White House AI Action Plan. Energy Secretary Chris Wright said the project is key to keeping “the lights on” while powering next-generation AI infrastructure. Secretary of the Interior Doug Burgum added that the investment demonstrates America’s leadership in energy and AI, while the White House National Energy Dominance Council described it as a cornerstone of U.S. energy security.
Virginia’s congressional delegation also voiced support. Senators Mark Warner and Tim Kaine praised the project’s economic and strategic benefits, while Congressman John McGuire called it a vital step for energy resilience.
Toshiaki Tokunaga, Hitachi’s global CEO, said the company is “committed to powering America’s energy future,” while Hitachi Energy CEO Andreas Schierenbeck emphasized the importance of domestic transformer production to secure supply chains and reduce bottlenecks.
The Virginia plant is part of a wider $9 billion global investment program by Hitachi Energy to expand manufacturing capacity, research, and partnerships worldwide. With electricity demand soaring and data centers proliferating, the company said its U.S. expansion will provide long-term jobs, strengthen local supply chains, and enhance the resilience of America’s grid.
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