Grid Giant Rises in Virginia

Hitachi Energy boosts US transformer output as developers face tight supply

8 Dec 2025

A surge in manufacturing investment is emerging in the US power sector, with a new transformer megasite in rural Virginia becoming its main symbol. Hitachi Energy is directing part of a planned $1bn national outlay to a plant under construction in South Boston that is set to become the country’s largest source of high-capacity power transformers, equipment that has been in short supply for years.

Limited transformer availability has slowed solar projects, delayed grid maintenance and created long queues for developers. Utilities have adjusted timelines to manage the strain, turning the shortage into a persistent drag on US energy targets. Expectations have risen that the new Virginia facility, together with a major expansion of Hitachi Energy’s components plant in Alamo, Tennessee, could ease the bottleneck.

Demand for electricity is growing at a pace not seen in decades, driven largely by data centres that can add hundreds of megawatts of load within a single region. One utility executive described the period as “a hinge moment for the grid”, noting that delays now carry material risk.

Analysts say the company’s investment mirrors a broader reassessment of global supply chains. Heavy dependence on overseas manufacturers has exposed US developers to long lead times and geopolitical shocks. Building more domestic capacity is viewed as a way to stabilise prices and give project builders greater certainty.

Federal officials have echoed these concerns. The Department of Energy has warned that thin transformer supply threatens both renewable development and routine reliability work, and recent policy incentives have encouraged private capital to return to manufacturing.

Challenges remain in hiring skilled labour, sourcing specialised materials and maintaining predictable demand. Yet few analysts expect the country’s need for electricity to ease, suggesting that the renewed focus on manufacturing reflects a grid preparing for sustained growth rather than a temporary upswing.