Hitachi Energy announced on September 4, 2025, a massive investment plan of approximately $1 billion to expand the production of power grid components in the United States. This move is directly linked to the projected explosive growth in energy consumption due to the boom in AI data center construction. The centerpiece of the plan is a $457 million investment to build a new large power transformer factory in South Boston, Virginia. The remaining funds will be allocated to upgrading existing facilities and strengthening supply chains. Company executives emphasized that current manufacturing capacities are insufficient to meet the future demand created by data centers. This news is a prime example of the "secondary effect" of the AI revolution, which is stimulating multi-billion dollar investments in traditional industrial sectors like energy.
Hitachi Energy Invests $1B in US Power Grid Driven by AI Data Center Demand
