Hitachi Energy plans to invest $528 million in a new transformer manufacturing facility in Gallman, Mississippi, marking the company’s largest single U.S. investment to date and bringing its broader American manufacturing expansion program to approximately $1.5 billion.
The new factory will create more than 700 jobs and substantially increase Hitachi Energy’s domestic transformer production capacity as electricity demand rises across data centers, industrial facilities, advanced manufacturing and other power-intensive markets.
The Gallman facility will be located approximately 6.5 miles from Hitachi Energy’s existing Crystal Springs plant.
It will be more than twice the size of the existing operation and is expected to more than double production capacity.
Construction is scheduled to begin in late 2026, with transformer production targeted to start in 2029.
Once the new factory is complete, transformer manufacturing currently performed at Crystal Springs will transition to Gallman.
Hitachi Energy sees transformers as one of the critical supply-chain constraints facing grid expansion.
The new capacity is intended to support utilities and other customers investing in grid modernization, new generation, data centers and electrification.
The Mississippi project is part of a much larger expansion of Hitachi Energy’s U.S. manufacturing footprint.
In June, the company broke ground on a $457 million expansion of its large power transformer factory in South Boston, Virginia, which is expected to create 825 jobs.
It has also announced a $106 million expansion in Alamo, Tennessee, focused on transformer components and more than 100 jobs, along with a $70 million expansion in Pennsylvania for high-voltage grid equipment.
Collectively, the projects are expected to create more than 1,600 jobs.
Hitachi said its broader parent organization has invested or committed more than $14 billion in the United States since 2020.
For Hitachi Energy, the investments are intended to provide domestic manufacturing capacity at a time when grid infrastructure has become increasingly important to the expansion of AI computing, manufacturing and other major sources of electricity demand.
KEY QUOTES:
“Demand for electricity is growing rapidly, and the grid must grow with it. This investment in Mississippi, our largest ever in the U.S., reflects our long-term commitment to American manufacturing and building the grid infrastructure that will help power America’s growth for decades to come.”
Andreas Schierenbeck, CEO of Hitachi Energy
