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Hitachi ( HTHIF ) to build massive new facility in Virginia for

power

transformers

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Investment aims to meet AI data centers' electricity

demand

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Hitachi's ( HTHIF ) global investment exceeds $9 billion

By Laila Kearney

NEW YORK, Sept 4 (Reuters) - Hitachi ( HTHIF ) plans to invest $1

billion to expand its U.S. power grid infrastructure

manufacturing, its energy unit said on Thursday, as the country

faces record electricity demand from Big Tech's build-out of AI

data centers.

Hitachi's ( HTHIF ) announcement follows a push by the administration

of U.S. President Donald Trump to dramatically increase

electricity supply for the rapid expansion of artificial

intelligence, which is being developed in energy-intensive data

centers around the globe.

"If we are going to win the AI race, reindustrialize, and

keep the lights on, America is going to need a lot more reliable

energy," U.S. Energy Secretary Chris Wright said in a statement.

"Thankfully, Hitachi ( HTHIF ) is delivering."

The U.S. holds the biggest concentration in the world of

data centers, which are expected to triple their energy use to

consume about 12% of the domestic power supply in less than

three years. As a result, many utilities are ramping up spending

on the long-stagnating electrical grid.

Nearly half of Hitachi Energy's latest investment, or $457

million, will go towards building a new facility in South

Boston, Virginia, to manufacture large power transformers. The

facility will be the biggest U.S. producer of the massive

transformers, which can run as large as a two-story home,

Hitachi ( HTHIF ) said.

Construction of the project is set to begin this year, with

service to begin by 2028, the company said.

"Bringing production of large power transformers to the U.S.

is critical to building a strong domestic supply chain for the

U.S. economy and reducing production bottlenecks," said Andreas

Schierenbeck, CEO of Hitachi Energy, which is a subsidiary of

Japan's Hitachi Ltd. ( HTHIF )

Transformers, which help transport electricity, have been in

short supply since the COVID-19 pandemic disrupted global supply

chains.

Hitachi ( HTHIF ), which produces other types of electrical equipment

in the U.S., including breakers and switchgear, is also

investing in its facilities near Pittsburgh, Pennsylvania.

The U.S. investments are part of more than $9 billion

Hitachi ( HTHIF ) is deploying globally, in part to expand its

manufacturing capacity.

A Hitachi ( HTHIF ) spokesperson said the company has received a

commitment from the White House around expediting the

development of new manufacturing production capacity for power

components.

Without elaborating, the spokesperson also said that Hitachi ( HTHIF )

is working together closely with the White House on various

other initiatives.