Key facts
- Hitachi Energy will invest $528 million in a new transformer factory in Mississippi.
- The new factory is expected to begin operations in 2029.
- The facility will produce mid-range transformers for data centers, semiconductor plants, and other industrial operations.
- This investment is part of Hitachi Energy's broader $1.5 billion U.S. manufacturing expansion.
Hitachi Energy plans to build a $528 million factory in Gallman, Mississippi, to produce electrical transformers, marking its largest single investment in expanding its U.S. manufacturing capabilities. The new facility, slated to commence operations in 2029, will be approximately double the size of Hitachi Energy's existing Crystal Springs facility in the state. It will produce mid-range transformers suitable for data center projects, semiconductor plants, and other industrial operations with large power needs.
The expansion addresses a critical gap in U.S. electrical infrastructure, as record-high power demand driven by the proliferation of data centers and the electrification of buildings and transportation has outpaced the availability of components like transformers. Andreas Schierenbeck, CEO of Hitachi Energy, stated that the transformers produced at the new plant will be essential for building data centers and investing in semiconductors. This investment is part of Hitachi Energy's broader $1.5 billion commitment to boost its production capacity in the U.S. U.S. Energy Secretary Chris Wright emphasized the necessity of such components for building out the nation's electrical infrastructure.