Hitachi Energy has unveiled plans for a $457 million power transformer manufacturing facility in South Boston, marking the largest investment of its kind in Southside Virginia. The project is set to position the region as a major hub for advanced electrical infrastructure production.
The plant will focus on large power transformers, a technology essential for high-voltage transmission, AI-driven data centers, energy generation, and heavy industry. When completed, it will become the largest transformer manufacturing site in the United States, bringing more than 825 new jobs in engineering, manufacturing, and operations.
Governor Glenn Youngkin described the development as a turning point for the region, noting that both the jobs and the transformers produced in Virginia will strengthen the nation’s electrical grid. To support the growing workforce, the state, Halifax County, and Virginia Housing are also launching a 96-home residential project, ensuring housing capacity keeps pace with industrial growth.
Senator Mark Warner highlighted the project’s broader impact, calling it both a boost to Southside Virginia’s economy and a strategic step toward strengthening America’s energy security and growing AI sector.
Hitachi Energy executives underscored the importance of localizing production. CEO Andreas Schierenbeck said large transformers are a “linchpin” technology for a resilient grid and that U.S.-based manufacturing will reduce supply bottlenecks while securing critical components for the economy.
South Boston facility is part of Hitachi global expansion
The South Boston facility is part of Hitachi Energy’s $9 billion global expansion strategy, designed to scale up manufacturing and meet rising electricity demand worldwide.
For Southside Virginia, the investment represents more than a manufacturing milestone. It lays the foundation for long-term economic growth, creating high-value jobs and ensuring the region plays a central role in powering America’s energy future.
Despite the Trump administration’s stance on offshore renewable energy, energy projects are multiplying across the U.S., fueled by surging demand from AI and data centers. In Missouri, Arevon Energy, Inc. has secured a $250 million tax equity commitment from Wells Fargo Bank, N.A. to support its two-phase, 430-megawatt (MWdc) Kelso Solar Project in Scott County.
Hitachi Energy Power Transformer Facility in Virginia: Project Factsheet
Project Overview
Location: South Boston, Virginia
Developer: Hitachi Energy (Hitachi, Ltd. subsidiary)
Announcement Date: September 4, 2025
Investment
Capital Investment: $457 million
Facility: Advanced manufacturing plant dedicated to producing heavy-duty electrical transformers
Campus Integration: Expansion adjacent to current Hitachi Energy operations
National Ranking: Will become America’s largest production site for heavy electrical transformers
Workforce Development
Employment Generation: Over 825 new positions
- Career Opportunities:
- Technical engineering positions
- Skilled manufacturing roles
- Operational management positions
Job Security: Permanent, career-focused employment
Manufacturing Focus
Core Products: Heavy-duty electrical transformers
Market Applications:
Electrical transmission networks
Power plant infrastructure
Data center operations for artificial intelligence
Major industrial installations
Economic Importance
Essential infrastructure component for America’s electrical grid reliability
Strengthens domestic manufacturing capabilities in critical technology sector
Reduces supply chain vulnerabilities in transformer production
Addresses rapidly growing demand from technology and industrial sectors
Supports national energy independence objectives
Enables artificial intelligence infrastructure expansion
