Hitachi Energy Invest to Expand Transformer Component Facility in Tennessee
Hitachi Energy has announced a significant $106 million investment to expand its transformer component manufacturing facility in Alamo, Tennessee, further strengthening its role in the North American energy infrastructure supply chain. This major expansion is designed to support the surging demand for transformer bushings, particularly dry bushings for high-voltage direct current (HVDC) and alternating current (HVAC) transmission systems up to 800 kV. These components are critical for enabling reliable, long-distance power transmission, which is essential to meeting the rapidly growing needs of data centers, AI infrastructure, renewable energy projects, and other electrification-focused industries.
The expansion will add more than 60,000 square feet to the facility, bringing additional capacity for manufacturing, warehousing, and office operations. Specifically, over 35,000 square feet will be dedicated to advanced manufacturing space, 20,000 square feet to warehouse operations, and 5,000 square feet to new office areas. By mid-2027, the upgraded site is expected to be fully operational, creating more than 100 new jobs in the region and further contributing to the state’s growing advanced manufacturing ecosystem.
A key highlight of this expansion is the integration of advanced operational systems that will boost efficiency across the production chain. The facility will feature a vertically integrated machine shop, enabling in-house precision machining of critical components and reducing dependency on external suppliers. In addition, an integrated logistics center will streamline supply chain operations, allowing for just-in-time delivery, reducing the need for external warehousing, and ensuring faster turnaround for customer orders.
Hitachi Energy’s investment comes at a crucial time when the U.S. power grid is under increasing pressure to adapt to new demands. The explosive growth of artificial intelligence, digital infrastructure, and data storage requires vast amounts of reliable power, while the transition to renewable energy sources depends on the ability to move electricity across long distances. By expanding its Tennessee facility, Hitachi Energy is positioning itself to play a pivotal role in building a stronger, smarter, and more resilient grid.
This expansion is also part of the company’s broader commitment to sustainability and long-term innovation. Transformer bushings, especially dry types, are designed to improve efficiency, reliability, and environmental performance. By scaling up the production of these critical components in the U.S., Hitachi Energy is not only strengthening domestic supply chains but also helping accelerate the transition toward cleaner and more reliable energy systems.
With its \$106 million investment in Alamo, Hitachi Energy is reinforcing its leadership in high-voltage transmission technology while boosting local employment and economic development. The project underscores the company’s vision of delivering advanced solutions that power industries, communities, and the digital economy of the future.
