Hitachi Energy invests additional $250 million USD to address global transformer shortage

Hitachi Energy announced today at CERAWeek additional major investments of more than $250 million USD by 2027 to expand global production of critical components for transformers. This rapid follow-up to the recently announced $6 billion USD investment across the company portfolio reflects the escalating transformer shortage, which continues to increase. 

As the electrification of industries, particularly data centers and AI, drives unprecedented demand for electricity, the need for transformers has surged beyond initial projections. To keep pace with this accelerating demand, Hitachi Energy is expanding its commitment to scale up production and strengthen supply chains in the U.S. and worldwide.

These investments bolster Hitachi Energy’s manufacturing capabilities across the U.S., enhancing production capacity at the company’s transformer factories in Virginia, Missouri, and Mississippi. It includes transformer components such as bushings and insulation as Hitachi Energy is a critical supplier to other transformer manufacturers.

This pivotal move will also help alleviate the broader, ongoing transformer supply shortage, ensuring increased production capacity and supply-chain resilience. The global investment program, one of the most significant in the industry today, also strengthens Hitachi Energy’s manufacturing capabilities in Asia, South America, and Europe. 

Transformer investments are part of a broader, multi-billion-dollar investment plan that Hitachi Energy is deploying across its manufacturing, engineering, digital, R&D, and partnership activities. These investments are being rolled out across all major markets globally to enable the company to meet customers’ commitments and market demand. Hitachi Energy is also delivering enhancements in supply chain management, digitalization, and automation, allowing capacity expansion and accelerated speed to market.

Transformers are vital to the clean energy transition and enable the efficient transmission and distribution of electricity. They are a key element in integrating renewables, expanding grid interconnections, powering data centers, electrifying transportation, and facilitating the decarbonization of energy systems.

Transformer insulation and components, such as bushings, tap-changers, insulation material and parts, and other accessories, are essential to the seamless operation of transformers. As the world’s largest transformer manufacturer, Hitachi Energy has over 60 transformer factories and 30 service centers worldwide, providing the world's broadest portfolio of transformer insulation and components. 

Today's investment builds on the $6 billion USD announced in 2024, including $1.5 billion USD specifically allocated to scaling global transformer production. This expansion is essential to meeting growing demand and supporting long-term decarbonization and electrification efforts.

All announced capacity investments include sustainable and state-of-the-art manufacturing technologies for operational efficiency while ensuring high standards of safety and quality. They are advancing the company's efforts to become carbon-neutral in its own operations by 2030 and aim to create positive economic and social impacts in local communities wherever the company works.