Hitachi Energy has announced plans to construct a $528 million transformer manufacturing facility in Gallman, Mississippi. The new plant will be more than double the size of Hitachi’s current Crystal Springs plant, which is 6.5 miles away. As a result, the Gallman transformer plant will generate over 700 jobs and boost US production of vital power grid components.
The construction is expected to start later this year, and the manufacturing of transformers is expected to start in 2029. In particular, Hitachi Energy plans to move its transformer manufacturing facility from Crystal Springs to the new Gallman plant when it opens. As a result, the Crystal Springs site will be converted to warehousing, training and other operational uses, while the company remains committed to the region.
The facility will facilitate in providing power to not only data centers but also other related infrastructure such as the Intel Ohio One chip plant. In recent updates, SK Hynix is in exploratory talks with Intel about manufacturing memory chips on U.S. soil for the first time, potentially leasing part of Intel’s long-planned Ohio facility. The agreement would be a major success for the Trump administration’s efforts to develop domestic chipmaking capabilities
Hitachi Transformer Manufacturing Facility Anchors $1.5bn Expansion
The Hitachi transformer manufacturing facility is part of Hitachi Energy’s $1.5 billion US manufacturing expansion program. In addition, the program provides for extra investments in Virginia, Pennsylvania and Tennessee of about $1.5 billion. The additional capacity is to meet the growing demand for electricity from modernisation of the national power grid, industrial electrification, data centres and advanced manufacturing. Hitachi Energy projects in the United States will generate over 1,600 jobs and contribute to grid resilience, reliability and security, the company estimates. The Gallman transformer plant is a project designed to address the increasing demand for critical infrastructure components in the country.
Mississippi Governor Highlights Strategic Energy Infrastructure Investment
Mississippi Governor Tate Reeves called the investment “transformative for the state and nation. Reeves said that Hitachi Energy made its biggest investment in America anywhere in the country, but selected Mississippi. The $528 million investment is a result of Hitachi Energy’s partnership with federal, state and local governments to strengthen domestic manufacturing and workforce development. The project reflects ongoing progress in developing US manufacturing capability for power grid components critical to national infrastructure resilience.
Project Overview
- Project Name: Gallman Transformer Manufacturing Facility
- Project Value: $528 Million
- Location: Gallman, Mississippi, USA
- Developer: Hitachi Energy (Hitachi subsidiary)
- Status: Construction to commence late 2026, manufacturing begins 2029
Scope
- Transformer manufacturing facility
- More than twice the size of Crystal Springs facility
- Critical power grid component production
- Regional warehousing and training operations
- Production transfer from Crystal Springs planned
Project Highlights
- Over 700 new jobs created
- Part of $1.5 billion US manufacturing expansion
- Addresses advanced manufacturing and data center electricity demands
- Supports national power grid modernization
- Total program creates 1,600+ jobs across multiple states
Key Developments
- Project announced September 2026
- Construction commencing late 2026
- Manufacturing targeted for 2029 startup
- Crystal Springs facility transition to warehousing role
- Part of broader Virginia, Pennsylvania, Tennessee investments
Key Challenges
- 2029 manufacturing startup timeline
- Crystal Springs transition coordination
- Meeting US transformer production demand surge
- Workforce development and hiring in Mississippi
- Coordinating with power grid infrastructure modernization
Outlook
- Construction beginning late 2026
- Manufacturing operations commence 2029
- Crystal Springs maintains regional workforce commitment
- Supports grid resilience and reliability nationwide
- Part of critical US infrastructure modernization strategy
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