Hitachi Energy is set to invest more than $1bn to expand electrical grid infrastructure manufacturing capabilities in the US.

The investment includes around $457m for a new facility dedicated to large power transformers in South Boston, Virginia, as well as expansions of existing production sites across the country.

This initiative is designed to address the increasing energy demands associated with AI data centres and aligns with the White House AI Action Plan.

It aims to ensure domestic availability of essential grid technologies.

The investment is expected to support the energy needs of various sectors such as manufacturing while facilitating necessary upgrades and expansions of the electrical grid.

US energy secretary Chris Wright said: “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.

“Thankfully, Hitachi is delivering. The Trump administration looks forward to continuing to partner with private industry to ensure the American people access to affordable, reliable, and secure energy and thousands of high-paying jobs.”

The projects are anticipated to strengthen the supply chains for electrical equipment within the US, contributing to the development of technologies that enhance the resilience of the electrical grid.

The new manufacturing facility in South Boston will focus on producing large power transformers, which are vital for high-voltage transmission, power generation, and industrial applications.

This facility is poised to be the largest of its kind in the US and is projected to create over 825 jobs in the region, spanning roles in engineering and manufacturing.

These efforts are part of a larger global investment programme exceeding $9bn, aimed at expanding manufacturing capabilities and research and development to improve the reliability and security of energy systems worldwide.

Hitachi Energy CEO Andreas Schierenbeck said: “Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race.

“Bringing production of large power transformers to the US is critical to building a strong domestic supply chain for the US economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging.”