Hitachi Energy Will Build $528 Million Mississippi Factory
The new facility in Gallman will significantly increase transformer production when it opens in 2029.
Updated on Sept. 18, 2026 in Manufacturing
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Hitachi Energy announced it will invest $528 million to construct a large-scale power transformer manufacturing facility in Gallman, Mississippi. The new site will replace the company's existing operations in Crystal Springs upon its scheduled production start in 2029.
Why it matters
The investment is designed to address acute supply constraints for transformers driven by the rising power demands of data centers, industrial manufacturing, and national electrification efforts. It serves as the cornerstone of the company's broader $1.5 billion commitment to expanding its U.S. production footprint.
The Gallman facility will produce transformers ranging from 10 MVA to 160 MVA with voltage capacities up to 230 kV. This new site will be more than twice the size of the current Crystal Springs, Mississippi, operation.
The players
Hitachi Energy
A global leader in power grids and energy technology that provides equipment for electrical utilities and industrial sectors.
The details
Production will shift entirely from the existing Crystal Springs factory to the new Gallman location once the project is finished. This initiative is part of a larger, multi-state expansion that includes increased capacity at facilities in Pennsylvania, Virginia, and Tennessee.
Timeline
September 16, 2026: Hitachi Energy announced the new facility plans.
2029: The company expects to begin production at the new Gallman site.
Market Landscape
This facility expansion positions the company to better compete in the U.S. energy sector amid rising demands from data centers and electrification. The move underscores an industry-wide consolidation toward larger, more automated manufacturing hubs that can meet complex grid requirements.
The expansion aims to stabilize long-term energy infrastructure, which may help mitigate delays in power grid development projects. While it provides no immediate change to consumer utility bills, it seeks to address the supply shortages currently hindering local electrification efforts.
The takeaway
The move reflects a strategic shift toward domestic manufacturing to solve critical infrastructure bottlenecks. This investment highlights how major energy players are prioritizing large-scale production sites to keep pace with the nation's increasing power load.
Further reading
For broader trends in regional industrial development, visit the Manufacturing section.
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