Input Stories

Hitachi Energy announced a massive investment in U.S. production of power grid infrastructure yesterday, to meet the exponentially increasing demand for electricity from artificial intelligence data centers.  

AI Action Plan: The investment follows the Trump administration’s commitment to building out energy infrastructure and strengthening the grid, as laid out in its AI Action Plan.

• The NAM praised the plan when it was released, and the NAM’s recommendations were instrumental in shaping the policy.

The details: Almost half of the investment, $457 million, will be dedicated to building a new facility in South Boston, Virginia, that will manufacture large power transformers. The facility will bring more than 825 new jobs to the region, according to the company.

• The rest of the funds will support “significant” expansions at Hitachi Energy facilities around the country.
• In total, the company expects these investments to create thousands of jobs.

The need: “The U.S. holds the biggest concentration in the world of data centers, which are expected to triple their energy use and consume about 12% of the domestic power supply in less than three years,” according to Reuters.

The Trump administration responds: “If we are going to win the AI race, reindustrialize and keep the lights on, America is going to need a lot more reliable energy. Thankfully, Hitachi is delivering. The Trump administration looks forward to continuing to partner with private industry to ensure the American people [can] access to affordable, reliable and secure energy and thousands of high-paying jobs,” said Energy Secretary Chris Wright.

The NAM says: “AI is no longer a future ambition—it is already central to modern manufacturing, and the [White House’s] AI Action Plan is accelerating innovation,” said NAM President and CEO Jay Timmons.