The Race to Rebuild America’s Transformer Supply

Hitachi, Siemens, and GE Vernova promise faster future capacity and eased grid bottlenecks

3 Dec 2025

The US is taking steps to resolve a persistent shortage of large power transformers that has delayed clean energy projects and slowed growth in power-intensive data centres. Developers have faced waits of more than two years for equipment, but a wave of domestic investment is shifting expectations for the decade ahead.

Momentum increased after Hitachi Energy committed more than $1bn to expand its US transformer manufacturing. Siemens has announced plans to produce large units domestically, although its new capacity is not expected before 2027. GE Vernova has upgraded several US facilities but has not detailed how quickly this will lift output. Together, these moves point to a more resilient local supply base rather than a rapid jump in available hardware.

Demand for transformers has more than doubled since 2019, driven by the growth of renewable power, mounting interconnection queues and the rising electricity needs of data centres linked to artificial intelligence. Utilities have warned that long equipment delays now threaten project timetables, while federal agencies caution that ongoing shortages could slow national climate targets and leave the grid vulnerable during extreme weather.

Analysts view the new factory plans as a structural shift. Greater domestic production could give developers more certainty when planning new wind and solar projects, support the build-out of digital infrastructure and strengthen regional networks. Constraints persist, including limited specialised labour and competition for materials such as electrical steel, which is essential for high-voltage units.

Even so, the recent investment cycle has lifted expectations. Companies see scope to simplify procurement, update designs and restore confidence in the equipment at the core of the electricity system. As additional US capacity comes online and lead times shorten later this decade, many expect these commitments to accelerate the country’s transition to a more reliable and modern grid.