Hitachi Energy will invest $457 million and add 825 jobs at its South Boston campus in Halifax County as it plans to build more power grid components in the face of a rapidly rising national demand for electricity.
Officials said Thursday that the addition of a new production facility will make the South Boston location the United States’ biggest manufacturing site for large power transformers, which help regulate voltage in electricity transmission.
It’s part of a $1 billion investment that includes expanding other company facilities around the country, creating thousands of jobs in all, as artificial intelligence and data centers contribute to a “skyrocketing” demand for more energy, the company said in its announcement.
“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race,” Hitachi Energy CEO Andreas Schierenbeck said in a news release.
“Bringing production of large power transformers to the U.S. is critical to building a strong domestic supply chain for the U.S. economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging.”
Zurich, Switzerland-based Hitachi Energy makes a variety of electrical equipment for customers in the utility, data center and transportation sectors, among others. It employs 50,000 people across 60 countries.
Construction on the new South Boston transformer manufacturing facility will begin before the end of this year, and it should be operational by 2028, said Hitachi spokesperson Kurt Steinert.
Steinert said the company could not provide a timeline for hiring the 825 new employees but said it’s actively recruiting at the South Boston site.
Jobs created will include roles in engineering, advanced manufacturing and operations, the company said.
Hitachi Energy broke ground on its existing South Boston transformer facility in 1967. Today, it employs 670 people there. In Virginia, it also has facilities in Atkins and Bland.
Company and government officials on Thursday credited President Donald Trump’s pro-AI policies for supporting the South Boston investment. The White House said Hitachi’s expansion will accelerate Trump’s “energy dominance agenda.”
“If we are going to win the AI race, reindustrialize, and keep the lights on, America is going to need a lot more reliable energy,” U.S. Secretary of Energy Chris Wright said in a news release. “Thankfully, Hitachi is delivering.”
Halifax County donated 10 acres of land near the Hitachi Energy facility. A state grant will speed the construction of 96 homes for employees, with county officials waiving certain fees.
W. Bryant Claiborne, chair of the Halifax County Board of Supervisors, said in a news release that the county is “honored to partner with Hitachi for the expansion of the South Boston facility.”
“The additional jobs and substantial financial investment in the community shows Hitachi’s commitment to Halifax County and our commitment to a strong business climate where industry can grow and thrive,” Claiborne said.
The county, the Virginia Economic Development Partnership, the Southern Virginia Regional Alliance and the General Assembly’s Major Employment and Investment Project Approval Commission worked together to secure the project for Virginia.
Hitachi is eligible for a $29.4 million performance grant to help cover site preparation and facility costs, pending General Assembly approval.
Gov. Glenn Youngkin said in a news release that “hard-working Virginians and a business-friendly environment are what first brought Hitachi Energy to the Commonwealth.”
“Now, after years of success here, they are doubling down on that decision with this landmark investment in South Boston,” Youngkin said.
Thursday’s news follows other recent expansion announcements by Hitachi Energy in Virginia. In April, the company announced a $22.5 million investment at its Bland and Atkins sites, and in 2022, it announced a $37 million investment in South Boston.