Hitachi Energy said it would spend $1 billion to boost U.S. manufacture of important grid equipment because data centers and businesses are using more electricity. The proposal includes a $457 million facility for huge power transformers in South Boston, Virginia. The business says this will be the largest such location in the country. It also involves expansions at existing U.S. operations. The company says that the investments will create thousands of jobs and make supply chains for high-voltage equipment stronger in the US.
The White House said that Hitachi Energy’s decision was in line with President Donald J. Trump’s plan to make the US the world’s leader in energy. They said that this was evidence of the plan to address rising power needs. A White House article from Thursday says that the investment is part of a larger plan to bring production back to the U.S. and speed up the building of energy and technology infrastructure.
Hitachi Energy said that the expansion was directly related to the needs of AI data centers and the need to modernize the grid across the country. The company claimed the Virginia facility, which is being built next to its existing South Boston location, will make big power transformers for heavy industry, AI data centers, power production, and high-voltage transmission. It is estimated to create more than 825 jobs at the site. Hitachi and its companies are working on a global capacity program that will cost more than $9 billion. The Virginia project is just one component of it.
The decision was praised by high-ranking U.S. officials. “America needs a lot more reliable energy if we want to win the AI race, reindustrialize, and keep the lights on.” “Hitachi is delivering, which is a good thing,” stated Energy Secretary Chris Wright, according to Hitachi Energy. Doug Burgum, the Secretary of the Interior, said that being a leader in AI “must” go hand in hand with being a leader in energy.
Virginia leaders said it was a turning point for Southside. “Thanks again, Hitachi Energy, for trusting Virginia!” Governor Glenn Youngkin said as quoted in the release, “eight hundred and twenty-five new jobs,” and the corporation quoted him as saying that Halifax County and Virginia Housing would work together to create 96 new homes. U.S. Senators Mark Warner and Tim Kaine said the project will create “good-paying jobs” and make U.S. manufacturing stronger. Rep. John McGuire (VA-05) said the plant would make the U.S. energy industry even stronger.
Leaders of the company stressed the strategic risks. Hitachi Ltd. President and CEO Toshiaki Tokunaga remarked, “The United States is a key market for Hitachi, and this investment shows our commitment to powering America’s energy future.” Andreas Schierenbeck, CEO of Hitachi Energy, termed massive power transformers a “linchpin technology” for a reliable grid and for “winning the AI race.” He said that more capacity in the U.S. will alleviate bottlenecks and create “good-paying American jobs.”
The White House said that Thursday’s announcement was part of a larger effort that has drawn a “unprecedented” number of private investments in AI-era infrastructure. This includes a $92 billion cluster in Pennsylvania earlier this year, according to the administration’s piece.
Hitachi Energy said that the Virginia plant will be the main site for a multi-site expansion in the U.S. that will improve the dependability and resilience of the grid while speeding up supply times for critical equipment. The corporation said that the program was one of the biggest investments in manufacturing in the U.S. electrical industry in years.
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