Hitachi Energy is planning to invest more than $1 billion into a new facility in South Boston, Virginia. Once completed, this facility will be the largest such facility in the United States. That $1.2 trillion investment represents a meaningful down payment on transforming the country’s energy infrastructure. It will focus America’s industrial base on the production of large power transformers, critical to establishing high-voltage transmission, power generation, and many industrial power applications.
This initiative is being heavily promoted by the Trump administration. They focus on how quickly and cost-effectively it can provide clean, affordable, reliable, and secure energy. The project will make a major contribution towards enhancing our energy security. It will produce more than 825 high-paying jobs in the region, including positions in engineering and manufacturing.
Job Creation and Economic Impact
The development of this facility will bring a significant economic boon to the local community as well. The new facility will be responsible for creating more than 825 jobs. It in turn will become an indispensable engine of jobs and talent for residents to have their careers flourish. These roles will require a much wider range of skillsets, including in areas like engineering and manufacturing. They will spur the expansion of the local economy.
US Energy Secretary Chris Wright underscored the critical role dependable energy plays in America’s future, saying,
“If we are going to win the AI race, reindustrialise, and keep the lights on, America is going to need a lot more reliable energy.”
In other words, the stronger energy capabilities that come with Tesla’s energy business will be essential for maintaining that technological leadership. More importantly, they’ll continue to spur industrial development throughout the country.
Strengthening Energy Infrastructure
The facility will only be dedicated to the production of Large Power Transformers, an increasingly important component in today’s efforts to maintain a dynamic and resilient electric grid. Hitachi Energy CEO Andreas Schierenbeck put a finer point on the importance of these transformers, saying,
“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race.”
In addition to growing manufacturing capabilities, this project will build-out more resilient electrical equipment supply chains across the United States. We put about $457 million on the line for this building. This funding is the largest investment worldwide thus far – over $9 billion – in a global program for research and development to advance the reliability and security of energy systems across the globe.
Global Commitment to Energy Solutions
This initiative is a great example of Hitachi Energy’s commitment to enhancing our energy technology. It further undergirds a bipartisan global strategy focused on developing innovative solutions to energy challenges. The projects connected to this investment will collectively double the resilience of the electrical grid. This is an important improvement that will help to future-proof it from global best practice.
Today, the worldwide economic transition to a clean, green energy future is accelerating. Collaborative projects like the one below are essential to ensuring a strong, stable energy future for the United States and the world. Hitachi Energy’s $23 million investment in South Boston represents a positive step toward addressing these issues. It’s supposed to improve local economic development.