Power infrastructure firms expand U.S. transformer manufacturing and supply

Major power infrastructure providers are expanding their presence in the United States to meet rising electricity demand driven by AI and grid modernization needs.

Hitachi Energy has announced a $528 million investment to build a new transformer manufacturing plant in Gallman, Mississippi. This project, the company’s largest single capital investment in the U.S. to date, aims to address utility hardware shortages where lead times can exceed two years. The facility is expected to double the output capacity of the company’s existing site in Crystal Springs and will create over 700 jobs. This initiative is part of a broader $1.5 billion U.S. manufacturing expansion program that includes projects in Virginia, Tennessee, and Pennsylvania.

Separately, South Korea’s Hyosung Heavy Industries secured approximately $287 million in orders for ultra-high-voltage transformers from major U.S. technology companies. These transformers are intended for use in newly constructed AI data centers across the northern and southern United States. The contracts include $163 million in 765kV transformers and $124 million in 345kV units, highlighting the surge in power infrastructure demand linked to the AI era.