Hitachi Energy invests $106 million USD to expand transformer component manufacturing capacity at facility in Alamo, Tennessee

Hitachi Energy today announced a $106 million USD investment to expand its transformer component manufacturing facility in Alamo, Tennessee. This investment is part of a global investment in transformer components manufacturing announced earlier this year, reinforcing the company’s commitment to strengthening the U.S. grid supply chain and addressing the global transformer shortage with the most expansive investment plan in the industry.

The Alamo expansion will significantly boost production of transformer bushings, including dry bushings for high-voltage direct current (HVDC) and alternating current (AC) transmission systems up to 800 (kilovolts) kV. Once complete, the site will become the largest bushings manufacturing facility in North America, and one of the largest in the world. This investment recognizes the Alamo facility’s strategic importance in the U.S. domestic supply chain for power transmission infrastructure. The components manufactured in Alamo will support the growing need for long-distance power transmission to enable the rapid expansion of data centers, AI infrastructure, and other electrifying industries. 

The project adds over 60,000 square feet to the facility, including over 35,000 square feet for manufacturing, 20,000 square feet of warehouse space, and 5,000 square feet of new office space. The expanded site is expected to be operational by mid-2027 and will create over 100 new jobs in West Tennessee, offering long-term employment opportunities in engineering, skilled trades, and operational support roles. 

“Hitachi Energy’s manufacturing expansion in Crockett County is proof that Tennessee’s pro-business policies and talented workforce continue to attract investment from around the world,” said US Senator Marsha Blackburn. “This project in Alamo will bring good-paying jobs to the area, strengthen the local economy, and help power America’s energy future.”

“This investment by Hitachi Energy illustrates the confidence global companies have in West Tennessee — demonstrating our state’s competitiveness across the nation and around the world,” said US Senator Bill Hagerty. “This new manufacturing facility will bring even more jobs and therefore more opportunities to families in Crockett County. Hitachi Energy is addressing the fast-growing demand for transformer components, and this investment will help ensure that Tennessee remains at the forefront of America’s energy revolution.”

“This historic $100 million investment in Crockett County demonstrates Hitachi Energy’s transformational commitment to our community and the future of American energy production. Beyond the creation of 100 new jobs, this project strengthens our nation’s energy infrastructure and ensures grid stability as we meet growing energy demand. West Tennessee continues to see significant economic growth because of our business-friendly environment. I am grateful to Hitachi Energy for their continued investment in our community, and to our state and local leaders who worked hard to secure this investment,” said Congressman David Kustoff (TN-08).

“Japan is one of our top partners for FDI, and I’m proud to take part in announcing Hitachi Energy’s continued growth in West Tennessee. With nearly 200 Japanese companies operating across our state, Tennessee has become a proven destination for long-term success, and we greatly appreciate Hitachi Energy’s ongoing commitment to Crockett County and the significant role it has played in strengthening our business climate and international partnerships,” said TNECD Commissioner Stuart C. McWhorter.

“This investment in Tennessee is also an investment in the future of America’s energy infrastructure. We’re not only increasing our ability to deliver vital components to customers across the U.S. and the world, but we’re also making a long-term commitment to the Crockett County community. This facility plays a critical role in meeting fast-growing energy demand from AI as well as grid expansion and modernization, and we’re proud to grow our footprint and strengthen domestic manufacturing right here in Tennessee,” said Steve McKinney, head of transformers, North America, Hitachi Energy.

The project includes the implementation of an integrated logistics center and vertically integrated machine shop, enabling just-in-time delivery, reducing external warehousing needs, and enhancing operational efficiency. The added office space supports recruiting and workforce development in line with long-term growth plans.

By increasing the business’s total HVDC bushing capacity and enhancing global redundancy, the expansion de-risks single-site operations while supporting technology shifts in the market for dry bushings supporting IEEE standards.

This project builds on Hitachi Energy’s broader $6 billion USD global investment strategy announced earlier this year, which includes $1.5 billion USD dedicated to scaling transformer manufacturing worldwide. As the world’s largest transformer manufacturer, Hitachi Energy is advancing grid modernization with industry-leading solutions and a commitment to achieving carbon-neutral operations by 2030.

The Alamo, Tennessee expansion is a key step in supporting the build-out of energy infrastructure needed to power AI growth, increasing U.S. manufacturing capacity, and creating meaningful economic impact for the local communities in which the company operates.