LONDON, Oct 28 (Reuters) - Hitachi Ltd ( HTHIF ) signed a

deal with the U.S. Department of Commerce on Tuesday to promote

investment in grid modernization, as the U.S. faces record

electricity demand from Big Tech's build-out of artificial

intelligence data centers.

U.S. President Donald Trump visited Japan on Tuesday and the

two countries agreed to a deal on new-generation nuclear power

reactors and rare earths.

Hitachi ( HTHIF ), headquartered in Tokyo, said its agreement with the

U.S. will advance grid modernization and help boost the

development of AI in the U.S.

"We have to identify now together with our customers and with

the government direct projects where we can actually

contribute," Andreas Schierenbeck, chief executive of Hitachi

Energy, told Reuters.

Hitachi ( HTHIF ) will explore expanding its energy unit's

manufacturing activities, including adding transformer

production capacity, the company said.

In September, Hitachi Energy said it planned to invest $1

billion to expand its U.S. power grid infrastructure

manufacturing.