Hitachi Energy Invests $528 Million in New U.S. Transformer Factory
September 16, 2026
Hitachi Energy has announced a $528 million investment to build a new transformer manufacturing facility in Gallman, Mississippi, marking its largest single investment in the United States to date.
The new factory will be more than twice the size of the company’s existing Crystal Springs facility and will more than double its Mississippi transformer production capacity. Construction is expected to begin in late 2026, with transformer production scheduled to start in 2029. The project is also expected to create more than 700 jobs.
Growing power demand is driving transformer investment
Hitachi Energy said U.S. electricity demand is rising as data centers, advanced manufacturing, and industrial electrification continue to expand.
“Demand for electricity is growing rapidly, and the grid must grow with it,” said Andreas Schierenbeck, CEO of Hitachi Energy.
The expansion reflects growing demand for transformers as utilities upgrade power grids and large industrial and data center projects require additional electrical capacity.
For facility planners and EPC contractors, this trend also affects how power distribution and backup systems are specified. Isolation transformers can be used in industrial and critical-load applications where voltage conversion or electrical isolation is required.
In data centers, scalable modular UPS systems can provide redundant backup power for critical IT loads. For industrial equipment and other demanding loads, low-frequency UPS systems may be used where isolation, load tolerance, or extended backup time is required.
Hitachi Energy’s investment in Mississippi is another sign of how rapidly power infrastructure is expanding alongside data centers, industrial electrification, and grid modernization.
Learn more about TAFENG Power transformer and UPS solutions for data center and industrial applications.
