Hitachi Energy has announced a significant expansion of its global manufacturing, R&D; and engineering capacity to meet soaring demand for transformers, advanced grid technologies and digital solutions as the world prepares for exponential growth in AI data centres. The company’s multi-year investment programme of over $6 billion represents the largest in the power grid sector, and underscores its mission to inspire the next era of sustainable energy.
The rapid deployment of AI infrastructure worldwide is placing extraordinary pressure on global supply chains for critical equipment. According to recent market analyses, between 90 and 125 GW of new AI data-centre capacity will be added between 2025 and 2030.
This expansion alone could require between 670 and 1400 power transformers, along with extensive volumes of switchgear, disconnectors, power electronics systems and battery storage solutions. Current global lead times for large power transformers range between two and four years, driven by surging demand, limited manufacturing capacity and shortages of raw materials.
Hitachi Energy reports in its position paper titled ‘Gridlocked? AI’s Energy Appetite’ that it is taking decisive action. The company is significantly expanding manufacturing capacity across multiple regions, including targeted investments to support regional energy security and mitigate supply chain disruptions.
These investments are designed to strengthen production of high-voltage transformers, gas-insulated switchgear, advanced power electronics solutions and digital-enabled automation systems. As part of its long-term strategy, Hitachi Energy is also modernising and expanding its global R&D; footprint, particularly in the fields of digital grid management, power system stability, and next-generation transformer technology.
For Africa, these investments come at a critical moment, as the continent is experiencing rapid digitalisation, with increasing interest from hyperscale cloud providers and emerging AI firms. South Africa continues to lead the region in data centre capacity, while Kenya, Nigeria, Morocco, and Egypt are attracting strong foreign and domestic investment.
Yet grid bottlenecks, constrained transmission networks and ageing infrastructure pose challenges to the sustainable growth of the digital economy. By growing its global manufacturing capacity and reinforcing its regional presence, Hitachi Energy aims to ensure that African markets have access to the technologies they need to strengthen their grids and attract digital investment.
The company’s strategy is grounded in localisation and partnership. Hitachi Energy collaborates closely with African utilities, industrial customers, data centre developers, and governments to design solutions that respond to local conditions and developmental priorities.
This includes customised engineering, service partnerships and digital solutions that enhance grid visibility, optimise operations and support the reliable integration of renewables. As Africa accelerates its energy transition, these collaborations will help ensure stable, adaptable and affordable power systems capable of supporting the demands of AI, electrification and economic growth.
Reflecting on the company’s commitment to Africa, Mohamed Hosseiny, oversight country managing director for Africa at Hitachi Energy, said: “Our global investments are designed to serve local needs, and nowhere is this more important than in Africa. The continent is entering a new chapter in its digital and energy journey, and to seize this moment, Africa needs partners who can deliver innovation at scale and support long-term industrial and societal progress. Hitachi Energy is making unparalleled investments so that our customers across Africa have the technologies, expertise and dependable supply chain required to power a more sustainable and prosperous future.”
For more information contact Hitachi Energy,
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