Hitachi Energy, Siemens Invest $1.4 Billion in U.S. Transformers as Lead Times Stretch to 4 Years
Updated
Updated · pv magazine USA · May 11
Hitachi Energy, Siemens Invest $1.4 Billion in U.S. Transformers as Lead Times Stretch to 4 Years
1 articles · Updated · pv magazine USA · May 11
$1.4 billion in new U.S. transformer investment from Hitachi Energy and Siemens aims to ease a supply crunch that is delaying power projects nationwide.
Four-year lead times for high-capacity units now shape project schedules as AI data centers, electrified transport and industrial load drive demand far beyond factory capacity.
Wood Mackenzie data shows generator step-up transformer demand jumped 274% from 2019 to 2025, while substation transformer demand rose 116%; prices have climbed about 80% in five years.
Raw-material shortages—especially grain-oriented electrical steel and copper—have tightened supply, pushing developers to buy production slots early or refurbish older equipment.
Hitachi's more than $1 billion plan includes a South Boston plant due in 2028, while Siemens is spending $421 million in Charlotte, but analysts expect shortages to persist for years.
Can new factories and solid-state transformers solve the grid crisis before renewable energy projects are stranded?
Is America's transformer shortage the hidden bottleneck that will derail its global leadership in artificial intelligence?
With AI's power demand outstripping the grid, will on-site generation become the new standard for big tech?
The U.S. Power Transformer Crunch: Causes, Consequences, and the High-Stakes Push for Domestic Supply
Overview
The U.S. is facing a severe transformer crisis, driven by limited supplies of key raw materials like grain-oriented electrical steel and copper. With only one domestic supplier for GOES, manufacturers struggle to keep up with rising demand, leading to longer lead times and production bottlenecks. These challenges are made worse by technical labor shortages and broader supply chain issues. As a result, original equipment manufacturers cannot fulfill orders quickly, causing delays and escalating prices. The robust U.S. transformer market and rapid growth in electricity demand further intensify these problems, making it difficult for manufacturing capacity to catch up.