Hitachi Energy has announced a $106 million investment to expand its transformer component manufacturing facility in Alamo, Tennessee, reinforcing the company’s commitment to strengthening the US grid supply chain and addressing the global transformer shortage.
The Alamo expansion will significantly boost production of transformer bushings, including dry bushings for high-voltage direct current (HVDC) and alternating current (AC) transmission systems up to 800kV. Once complete, the site will become the largest bushings manufacturing facility in North America, and one of the largest in the world. This investment recognises the Alamo facility’s strategic importance to the US domestic supply chain for power transmission infrastructure. The components manufactured in Alamo will support the growing need for long-distance power transmission to enable the rapid expansion of data centers, AI infrastructure, and other electrifying industries.
The project adds over 60,000ft
2 to the facility, including over 35,000ft
2 for manufacturing, 20,000ft
2 of warehouse space, and 5,000 ft
2 of new office space. The expanded site is expected to be operational by mid-2027 and will create over 100 new jobs in West Tennessee, offering long-term employment opportunities in engineering, skilled trades, and operational support roles.
US Senator Bill Hagerty, said: “This investment by Hitachi Energy illustrates the confidence global companies have in West Tennessee — demonstrating our state’s competitiveness across the nation and around the world. This new manufacturing facility will bring even more jobs and therefore more opportunities to families in Crockett County. Hitachi Energy is addressing the fast-growing demand for transformer components, and this investment will help ensure that Tennessee remains at the forefront of America’s energy revolution.”
Long-term commitmentSteve McKinney, Hitachi Energy”s head of transformers (North America), said: “This investment in Tennessee is also an investment in the future of America’s energy infrastructure. We are not only increasing our ability to deliver vital components to customers across the USA and the world, but we are also making a long-term commitment to the Crockett County community.
“This facility plays a critical role in meeting fast-growing energy demand from AI as well as grid expansion and modernisation, and we are proud to grow our footprint and strengthen domestic manufacturing right here in Tennessee.”
The project includes the implementation of an integrated logistics center and vertically integrated machine shop, enabling just-in-time delivery, reducing external warehousing needs, and enhancing operational efficiency. The added office space supports recruiting and workforce development in line with long-term growth plans.
By increasing the business’s total HVDC bushing capacity and enhancing global redundancy, the expansion de-risks single-site operations while supporting technology shifts in the market for dry bushings supporting IEEE standards.
This project builds on Hitachi Energy’s broader $6 billion USD global investment strategy announced earlier this year, which includes $1.5 billion USD dedicated to scaling transformer manufacturing worldwide. As the world’s largest transformer manufacturer, Hitachi Energy is advancing grid modernization with industry-leading solutions and a commitment to achieving carbon-neutral operations by 2030.
The Alamo, Tennessee expansion is a key step in supporting the build-out of energy infrastructure needed to power AI growth, increasing US manufacturing capacity, and creating meaningful economic impact for the local communities in which the company operates.