Latest News

Hitachi invests $1 billion in US to manufacture power grid components

Hitachi's energy unit announced on Thursday that it would invest $1 billion in expanding its U.S. manufacturing of power grid infrastructure, as the nation faces record electricity demands from Big Tech building AI data centers.

Hitachi's announcement comes in response to a call by U.S. president Donald Trump for a dramatic increase in electricity supply, to support the rapid expansion and development of artificial intelligence. This is happening at energy-intensive data centres around the world.

In a recent statement, U.S. Secretary of Energy Chris Wright stated that "if we want to win the AI Race, reindustrialize and keep the Lights on, America will need a lot reliable energy." "Hitachi delivers."

In less than three year, the U.S. is expected to have the largest concentration of data centers in the world. These centers are predicted to triple their energy consumption to consume approximately 12% of domestic power. Many utilities are increasing their spending on the electrical grid, which has been stagnant for a long time.

Hitachi Energy will invest nearly half its latest investment of $457 million in a new manufacturing facility for large power transformers. The new facility will be built in South Boston, Virginia. Hitachi says the facility will become the largest U.S. manufacturer of massive transformers that can be as big as a two story home.

The company stated that construction of the project will begin in this year and service will begin by 2028.

Andreas Schierenbeck is the CEO of Hitachi Energy. It is a subsidiary company of Japan's Hitachi Ltd.

Since the COVID-19 pandemic, global supply chains have been disrupted, transformers that help transport electricity are in short supply.

Hitachi also invests in its facility near Pittsburgh, Pennsylvania, where it produces other types electrical equipment, such as breakers and switchgear.

The U.S. investment is part of the more than $9 billion Hitachi has invested globally, primarily to expand its manufacturing capabilities.

A Hitachi spokeswoman said that the White House has committed to accelerating the development of manufacturing capacity for power component components.

The spokesperson did not elaborate, but said that Hitachi and the White House are working closely on other initiatives. (Reporting and editing by Christopher Cushing; Laila Kearney)

(source: Reuters)