Hitachi Expands U.S. Transformer Manufacturing Under Japan-U.S. Energy Framework

Hitachi, Ltd. (TSE: 6501) announced plans to expand its transformer manufacturing operations in the United States, following the signing of a Memorandum of Understanding (MoU) with the U.S. Department of Commerce (DOC). The initiative supports the Japan-U.S. strategic investment framework to modernize power grids and strengthen energy infrastructure critical to the AI revolution.

The MoU aims to promote new investments in energy infrastructure needed to supply growing AI data centers and support electrification across the U.S. Through its subsidiary Hitachi Energy, the company will explore additional transformer production capacity and evaluate localizing other essential energy technologies.

This follows Hitachi's $1 billion U.S. investment, announced in September 2025--the largest in the country's electrical manufacturing sector--to expand production of power transformers and high-voltage equipment. The move is designed to address rising demand driven by AI, data center growth, and grid upgrades.

Hitachi also reaffirmed its role in advancing small modular reactor (SMR) technology, particularly the BWRX-300, through its partnership with GE Vernova Hitachi Nuclear Energy.

Toshiaki Tokunaga, President & CEO of Hitachi, said the company's goal is to enhance U.S. energy resilience and innovation. "Energy is the lifeblood of economic strength," he noted, emphasizing Hitachi's commitment to a sustainable and reliable power network.