Hitachi Energy has announced an additional investment of over $250 million USD by 2027 to expand global production of transformer components. This move follows the company's $6 billion USD investment announced in 2024 to address the rising global transformer shortage.

More than 40% of the new investment will be allocated to the United States, where Hitachi Energy will enhance manufacturing capabilities in Virginia, Missouri, and Mississippi. The expansion includes hiring over 100 new employees and increasing production of critical transformer components like bushings and insulation to strengthen the domestic supply chain.

The demand for transformers has surged due to the rapid electrification of industries, particularly data centers and AI, leading to a supply shortfall. Hitachi Energy CEO Andreas Schierenbeck emphasized the company’s responsibility to scale up capacity and accelerate production to support critical energy infrastructure projects.

Beyond the U.S., Hitachi Energy is also expanding its manufacturing footprint in Asia, South America, and Europe to ensure supply chain resilience. The company’s broader multi-billion-dollar investment plan aims to enhance engineering, R&D, digitalization, and automation to meet increasing demand.

Transformers play a vital role in the clean energy transition, enabling renewable energy integration, grid expansion, and the electrification of transportation. With over 60 transformer factories and 30 service centers worldwide, Hitachi Energy remains the world’s largest transformer manufacturer, reinforcing its commitment to a sustainable energy future.