Hitachi Energy Selects Mississippi for $528M Transformer Factory to Bolster U.S. Manufacturing, Grid Capacity
Hitachi Energy, which specializes in power grid and electrification technologies, announced on Tuesday its plans for a $528 million transformer factory in Gallman, Mississippi.
The Gallman transformer facility commitment is part of Hitachi’s broader $1.5 billion investment to scale its U.S. manufacturing capacity, reportedly marking its largest single investment in the country.
According to a company release, the Gallman plant will more than double Hitachi’s transformer production capacity in Mississippi as operations transition away from its existing plant in Crystal Springs. It will primarily focus on increasing the output of power transformers manufactured in Mississippi, with additional capacity targeted to help address rapidly growing electricity demand nationwide.
Electrification in the U.S. has been driven by the expansion of advanced manufacturing in the industrial sector and the rise of AI data centers.
While construction is expected to begin late this year roughly 6.5 miles away from the existing Crystal Springs plant, Hitachi noted transformer production at the Gallman site is scheduled to start in 2029. Hitachi added that the Mississippi facility will create more than 700 permanent jobs post-construction.
This planned site will join other major Hitachi projects as part of the company’s broader large-scale push to grow transformer manufacturing.
Other notable U.S. Hitachi developments include a $70 million expansion project announced in 2025 that spans three distinct regional Pennsylvania facilities in Westmoreland County, which focuses on high-voltage grid equipment production.
In Virginia, Hitachi announced a $457 million South Boston initiative to advance the production of large power transformers slated to be operational by 2028. Additionally, a $106 million transformer parts factory in West Tennessee, near Alamo, is slated for mid-2027.
"Since 2020, the Hitachi Group has invested and committed more than $14 billion in the United States, further strengthening our commitment as a trusted partner in supporting critical social infrastructure,” said Toshiaki Tokunaga, president & CEO of Hitachi, Ltd., in a statement. “This expanded investment will accelerate those efforts and contribute to powering America's energy future.”
The Hitachi, Ltd.-owned subsidiary is fueling a long-term commitment to American manufacturing that will bolster supply chain resilience and the U.S. power grid to meet rapidly growing energy demand.
In 2025, the Tokyo-based parent company detailed its initiatives to support strategic investment between the Japanese and U.S. governments. This includes the Trump administration’s and Mississippi governor’s latest goals, highlighted on Tuesday during this year’s annual G20 meeting in Houston, to promote domestic access to critical grid technologies.
"This is truly a massive win for Mississippi and the United States. Hitachi Energy could've made its largest investment in America anywhere in the country—but the company chose Mississippi," stated Gov. Tate Reeves.
According to consulting firm McKinsey & Company, the U.S. demand for power will increase annually by more than 3% through 2040.
"Demand for electricity is growing rapidly, and the grid must grow with it," said Andreas Schierenbeck, CEO of Hitachi Energy. "This investment in Mississippi, our largest ever in the U.S., reflects our long-term commitment to American manufacturing and building the grid infrastructure that will help power America's growth for decades to come.”
Located in Switzerland, Hitachi Energy also unveiled plans in August to address this rapidly growing demand for transformers worldwide. A $300 million investment will help bolster its power transformer and component manufacturing capacity in Hefei, East China’s Anhui Province, significantly expanding its global manufacturing footprint.
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Eric Moody