The race to power new data centers ramped up again Thursday, with Hitachi Energy announcing plans for a new factory in Virginia to build electric transformers — part of a $1 billion investment in U.S.-based manufacturing of critical grid equipment for meeting rising electricity demand.
Hitachi Energy, a Switzerland-based subsidiary of the Japanese conglomerate Hitachi, said the plant to be built in South Boston, Virginia, will begin operating in the second half of 2028.
Railroad car-sized electric transformers are required to move power over high-voltage lines. The demand for large power transformers has soared by 116 percent since 2019, according to a report last month by the Wood Mackenzie research firm. “This surge in transformer demand has created a significant supply deficit,” said the report, “with domestic manufacturing capacity unable to keep pace.”
White House aides hailed Hitachi Energy’s announcement as a building block in President Donald Trump’s energy strategy.
