Original post:
From Nikkei Asia, March 25:
US energy demand surges on data centers, factories, renewables and EV charging
Surging energy demand in the U.S. has pushed lead times for large power transformers to more than 30 months, according to the world's biggest transformer maker, as manufacturing bottlenecks are creating a supply shortage.
Anthony Allard, head of North America at Hitachi Energy, told Nikkei Asia that the U.S. cannot produce enough large power transformers to meet demand despite the billions of dollars the company is spending to increase American manufacturing capacity.
Hitachi Energy is investing $457 million to build a large power transformer factory in South Boston, Virginia, and to expand existing transformer and high-voltage equipment manufacturing facilities as part of a $2 billion package to strengthen the North American supply chain.
"We are investing in that new factory and at the same time having conversations with customers who are already asking us to benefit from this additional capacity," Allard said this week on the sidelines of the annual CERAWeek by S&P Global energy conference in Houston. He added that 70% of the large power transformers that the company sells in the U.S. are imported.
The equipment is critical for power grids to adapt voltage.
Utilities and transmission owners are rapidly developing new electricity capacity to meet swelling demand from new data centers, factories, renewable energy projects and electric vehicle charging infrastructure. BloombergNEF said data center power demand is set to spike from 34.7 gigawatts in 2024 to 106 gigawatts by 2035.
That in turn has created a need for transmission and distribution equipment along the grid. From 2019 to 2025, demand for power transformers soared by 116% while that for generation step-up transformers rocketed by 274%, according to consultancy Wood Mackenzie....
....MUCH MORE
For what it's worth both GE Vernova and Quanta Services manufacture transformers.
If interested see also:
May 20 2025: "Elon Musk says AI could run into power capacity issues by middle of next year"
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.....Previously on electrical transformers:
March 2025 - "This Essential Element of the Power Grid Is in Critically Short Supply"
Elon Musk has been prophesying this for the last couple years. And here we are....March 2025 - "The Device Throttling the World’s Electrified Future"
Previously, in general:
How AI Is Sparking a Change in Power Generation
"There’s a Shortage of Electrical Wires, Transformers. That’s Good for These Stocks."
And on Elon
Elon Musk's Latest Mission: Rev Up the Electricity Industry
One Year On Fom His Prediction: "Elon Musk Wants More Power"
"Elon Musk: AI will run out of electricity and transformers in 2025"
There are more previous posts but astute reader gets the point: We watch transformers so you don't have to.