Hitachi Energy plans to build a $528 million transformer factory in Gallman, Mississippi, its largest capital expenditure to date. Construction is scheduled to begin in the second half of 2026, with production starting in 2029. The facility will be roughly twice the size of the company’s existing Crystal Springs plant, more than double production capacity and create over 700 jobs. The project comes as U.S. electricity demand rises rapidly because of artificial intelligence, data centers and broader electrification, while transformer supply remains constrained. Hitachi Energy will transfer production from Crystal Springs to the new site and repurpose the existing plant for warehousing and training. The investment is part of a $550 billion U.S.-bound investment and financing package agreed by the Japanese and U.S. governments, and follows the company’s memorandum of understanding with the U.S. Commerce Department on expanding domestic transformer production.