Hitachi Energy Plans $528M Mississippi Transformer Factory as Grid Demand Grows

Hitachi Energy announced a $528 million transformer manufacturing facility in Gallman, Mississippi, a grid-infrastructure investment that the company says is its largest single U.S. investment to date and a cornerstone of an approximately $1.5 billion U.S. manufacturing expansion program. The company says construction is expected to begin later in 2026 and transformer production is scheduled to start in 2029 Hitachi Energy.

The project matters to construction markets because transformer capacity has become a critical constraint for power, manufacturing, data centers and utility infrastructure. Mississippi's governor said the project will create 654 jobs, while Hitachi's own announcement describes more than 700 jobs and says the new facility will more than double transformer production capacity in the area Office of Governor Tate Reeves Hitachi Energy.

What happened

Hitachi Energy said the new plant will be located in Gallman, Mississippi, about 6.5 miles from its existing Crystal Springs facility Hitachi Energy. The Mississippi governor's office identifies the site as a 45-acre parcel at the Copiah County Industrial Park in Gallman Office of Governor Tate Reeves.

The governor's office says the project includes purchase of the site, construction of a new facility, installation of new manufacturing equipment and infrastructure improvements Office of Governor Tate Reeves. Reuters reported the $528 million investment as part of Hitachi Energy's broader U.S. manufacturing expansion for electrical transformers Reuters.

Project details

Hitachi Energy says the Gallman factory will be more than twice the size of the existing Crystal Springs plant and will more than double transformer production capacity Hitachi Energy. The company says production will continue at Crystal Springs until the new factory is complete, after which transformer production will transition to Gallman while the Crystal Springs building remains available for warehousing, training or other operational needs Hitachi Energy.

The project is tied to advanced manufacturing, industrial electrification, data centers, energy-intensive industries and modernization of the U.S. power grid Hitachi Energy. State support includes assistance through the Mississippi Flexible Tax Incentive program, site development and infrastructure improvements, according to the governor's office Office of Governor Tate Reeves.

Why it matters to construction professionals

Transformer availability affects project delivery well beyond utility substations. Developers, industrial owners, data center teams and public agencies often need long-lead electrical equipment before major facilities can energize. Additional domestic capacity can help reduce schedule risk, but only after factories are built, staffed and producing.

For contractors, the facility itself could create construction opportunities in site work, foundations, structural systems, building envelope, manufacturing process support, electrical distribution, cranes, heavy equipment pads, utilities, commissioning and industrial safety planning. No general contractor, construction manager, architect or engineer was named in the fetched sources, so those roles remain unconfirmed.

Implications for owners and suppliers

• Owners: The project is a signal that grid-equipment supply chains are expanding in response to power demand from manufacturing, data centers and infrastructure.
• Suppliers: Domestic transformer production is relevant to switchgear, utility, electrical, steel, logistics and specialty construction markets.
• Workforce teams: The governor's office says AccelerateMS will work with Hitachi Energy and education partners to prepare workers for skilled roles Office of Governor Tate Reeves.

Part of a $1.5 billion U.S. buildout

The Gallman plant is the cornerstone of an approximately $1.5 billion U.S. manufacturing expansion program that also includes projects in Pennsylvania, Virginia and Tennessee Hitachi Energy. Hitachi Energy lists a $457 million expansion of its large power transformer factory in South Boston, Virginia, with 825 new jobs, and a $106 million expansion in Alamo, Tennessee, to increase production of critical transformer components, with more than 100 jobs Hitachi Energy.

Taken together, those projects point to a supply chain being rebuilt across several states at once. For owners and contractors, that matters because transformers are not a single product line. Small power transformers, large power transformers and the components that go into them each have their own lead times, and delays in any one of them can hold up energization of a finished building, substation or industrial line.

The existing Mississippi workforce

Hitachi Energy already operates a transformer factory in Copiah County that produces small power transformers and employs 475 people, according to the governor's office Office of Governor Tate Reeves. The state says the new project will add 654 jobs and expand the range of small power transformers manufactured domestically Office of Governor Tate Reeves. Hitachi Energy's own release describes the job count as more than 700, so the exact figure differs slightly between the two announcements Hitachi Energy. Readers should treat the state's 654 figure as the incentive-linked commitment and the company figure as its broader estimate.

The Mississippi Development Authority is supporting the project through the Mississippi Flexible Tax Incentive program, along with site development and infrastructure improvements, and Copiah County is also assisting Office of Governor Tate Reeves. Those public commitments usually translate into early civil, utility and road work around an industrial park before vertical construction starts.

What to watch next

Construction is expected to begin later in 2026, and production is scheduled to start in 2029 Hitachi Energy. The next key details will be construction-team selection, permit filings, sitework timing, equipment procurement and workforce-development commitments.

Bottom line

Hitachi Energy's Mississippi factory is both a construction project and a supply-chain project. It will take years to reach production, but the investment points to a larger market reality: power infrastructure is now central to industrial construction strategy.

Image credit: Official project image from Hitachi Energy press materials Hitachi Energy.

Sources

• Hitachi Energy: https://www.hitachienergy.com/news-and-events/press-releases/2026/09/hitachi-deepens-commitment-to-u-s-manufacturing-with-528-million-mississippi-transformer-factory
• Office of Governor Tate Reeves: https://governorreeves.ms.gov/hitachi-energy-bringing-its-largest-transformer-manufacturing-investment-in-u-s-to-mississippi/
• Reuters: https://www.reuters.com/business/retail-consumer/hitachi-energy-invest-528-mln-new-transformer-factory-mississippi-2026-09-15/