Update: Niagara Power Transformer Breaks Ground on $71M Cheektowaga Expansion

Update: Niagara Power Transformer has broken ground on its more than $71 million expansion in Cheektowaga, moving the Erie County transformer plant from approvals into construction, Governor Kathy Hochul announced on October 22, 2026 (Office of the Governor).

This is an update to our earlier report, Niagara Power Transformer Plans $71M Cheektowaga Expansion With 73 New Jobs, which covered the Erie County Industrial Development Agency review this summer. What is new is the groundbreaking itself and the full state incentive package, which now includes a New York Power Authority award, Excelsior Jobs tax credits and brownfield credits on top of the county abatements.

What Happened

The company, known as NPT, manufactures large liquid filled power and specialty transformers, the equipment that changes voltage levels as electricity moves across the grid. The expansion, branded the Niagara Power 50 Initiative, adds 96,000 square feet to the existing campus and is expected to raise production capacity by 50 percent (Office of the Governor).

The project scope includes specialized manufacturing equipment, expanded material handling and storage, upgraded site utilities, and new engineering and administrative space (FingerLakes1.com). Company President Chris Kraft called it "the largest investment in our company's history" and tied it to rising demand from manufacturing growth and electrification (Office of the Governor).

Jobs and Incentives

The expansion retains 146 existing jobs and creates 73 new full time positions, 57 of which will be represented by the International Brotherhood of Electrical Workers. IBEW Local 41 already has about 90 members building transformers at the plant (FingerLakes1.com).

The public support package, as described by the state, includes:

• $4.5 million from NYPA's Western New York Power Proceeds program.
• Up to $3.4 million in performance based Excelsior Jobs Program tax credits from Empire State Development.
• $1.5 million in tax credits tied to the site's participation in the Department of Environmental Conservation's Brownfield Cleanup Program.
• Nearly $2.2 million in sales and property tax abatements approved separately by the Erie County Industrial Development Agency.

(Office of the Governor)

Cheektowaga Supervisor Brian Nowak noted that the project reuses property that had been an eyesore, which is consistent with the brownfield program participation. NPT's roots date to 1924, and the company was recently acquired by Quanta Services, which the state described as a Fortune 200 infrastructure company. NPT also buys from more than 160 New York suppliers in steel fabrication, machining, coatings, electrical equipment, transportation and industrial services (Office of the Governor).

Why Transformers Matter

The state's announcement framed the project around a supply chain problem. Utilities need large transformers to replace aging infrastructure, connect new generation and serve new load, and limited domestic manufacturing capacity has stretched delivery times (FingerLakes1.com). Hochul said the expansion will help "ease a critical supply chain bottleneck," and NYPA President and CEO Justin E. Driscoll said it strengthens the grid supply chain (Office of the Governor).

NPT is one of several transformer and grid equipment makers adding U.S. capacity this year. We tracked that broader trend in Grid Equipment Factory Wave: Seven U.S. Plant Projects Total $1.84 Billion.

Local Reaction

Elected officials across levels of government backed the project at the groundbreaking. Rep. Tim Kennedy called it "an investment in Western New York's manufacturing legacy" and highlighted the 73 new jobs. State Sen. April N.M. Baskin said grid modernization makes investment in infrastructure and manufacturing more important than ever. Erie County Executive Mark C. Poloncarz called the expansion good news for the county and the state, and Buffalo Mayor Sean Ryan said it creates union jobs, including roles open to workers without prior experience. IBEW Local 41 Business Manager Greg Inglut called the new positions a "big win" for working families (Office of the Governor).

Where Things Stand

• Construction has formally started on the 96,000 square foot addition.
• The state has not published a completion date in this announcement, and the general contractor was not named.
• Combined performance based state credits total up to nearly $5 million, separate from the NYPA award and county abatements.

Implications for Owners, Developers, Contractors and Subs

For industrial owners: Transformer lead times affect any project that needs a new utility service or substation work. Added domestic capacity will not change near term schedules, but it is a signal that manufacturers expect sustained demand from data centers, manufacturing and electrification.

For contractors and subs in Western New York: An active 96,000 square foot heavy industrial build in Cheektowaga creates work for steel erectors, concrete crews, electricians, and mechanical and process piping trades. Site utility upgrades are listed in the scope, which typically brings in civil and underground subcontractors. Suppliers already in NPT's network of more than 160 New York vendors may also see added volume once production ramps.

For the regional labor market: Fifty seven new IBEW manufacturing positions add to demand for electrical skills in the Buffalo area, which is also seeing a growing slate of data center and power projects.

What to Watch

• Announcement of a construction schedule and completion target.
• Whether the later phase described in our earlier coverage, a roughly 32,000 square foot addition to the existing plant, proceeds on the same timeline.
• Hiring milestones tied to the Excelsior credits, which are performance based.

Bottom Line

The Niagara Power Transformer expansion is now in the ground, backed by a layered state and county incentive package and a clear market reason: the country needs more domestic transformer capacity. For Erie County's industrial construction market, it is a meaningful private project to track through 2027.

Related Coverage

• Niagara Power Transformer Plans $71M Cheektowaga Expansion With 73 New Jobs
• Grid Equipment Factory Wave: Seven U.S. Plant Projects Total $1.84 Billion
• Hitachi Energy Plans $528M Mississippi Transformer Factory as Grid Demand Grows
• Western New York's Data Center and Power Buildout: Where the Major Projects Stand in October 2026

Image credit: Office of the Governor of New York State. Image from the source article.

Sources

• Office of the Governor of New York State, "Governor Hochul Announces Groundbreaking of Niagara Power Transformer's More Than $71 Million Expansion to Support Grid Modernization": https://www.governor.ny.gov/news/governor-hochul-announces-groundbreaking-niagara-power-transformers-more-71-million-expansion
• FingerLakes1.com, "Niagara Power Transformer breaks ground on $71M expansion, plans 73 jobs": https://www.fingerlakes1.com/2026/10/23/niagara-power-transformer-breaks-ground-on-71m-expansion-plans-73-jobs/