US facility · Power grid
Hitachi Energy commits $528 million to a new Mississippi transformer plant
- Company
- Hitachi (via Hitachi Energy)
- Project
- Mississippi plant, Gallman, Mississippi
- Value
- $528M
- Status
- Construction starts late 2026. Production planned for 2029.
- Date
- 2026-09-15
Hitachi's grid business will build a factory in Gallman, Mississippi, its largest single US investment, creating more than 700 jobs by the company's count (Mississippi's governor's office cites 654 new jobs). The plant will make small and medium power transformers and more than double output compared with the nearby Crystal Springs site, which it will replace. The project brings Hitachi Energy's US manufacturing expansion to about $1.5 billion.
Why it matters
Greenfield rather than M&A, but driven by the same thesis pulling Japanese capital into the US: power demand from data centers, and transformers as a known bottleneck in grid expansion.
The investment
The factory will be built on a 45-acre site in the Copiah County Industrial Park in Gallman, about 6.5 miles from Hitachi Energy's existing Crystal Springs plant. Construction is due to begin in late 2026, and transformer production is scheduled to start in 2029. Crystal Springs will remain the active production site until then.
Hitachi Energy says the new building will be more than twice the size of Crystal Springs. That plant makes small power transformers and employs about 475 people. Once Gallman is running, transformer production will move there, and the older building will be kept for supporting work such as warehousing and training. The company says the project also widens the range of small power transformers it makes in the US.
Jobs and incentives
Job figures differ by source. Hitachi Energy says the plant will create more than 700 jobs, while the office of Mississippi Governor Tate Reeves and local media put the number of new jobs at 654.
Mississippi is supporting the project through its Flexible Tax Incentive program and with site development and infrastructure work, and Copiah County is also providing assistance. The value of the incentives was not disclosed. Reeves announced the project on September 15, 2026, from the G20 Energy Abundance Ministerial in Houston, with Trump administration officials present.
Hitachi's wider US build-out
Gallman follows a September 2025 pledge by Hitachi to invest more than $1 billion in US grid equipment manufacturing. The largest piece was a $457 million large power transformer campus in South Boston, Virginia, which the state said would add 825 jobs next to an existing plant with about 670 employees. Virginia also offered a $29.4 million performance grant, subject to legislative approval.
The company says the new capacity is aimed at utilities and other customers investing in grid upgrades, new generation, data centers and electrification. Hitachi Energy describes transformers as one of the main supply constraints on grid expansion.
What to watch
Key points to follow are the start of construction in late 2026, disclosure of the state incentive package, and how the Crystal Springs workforce moves to the new site ahead of the 2029 start of production.
Sources
Kakehashi M&A News home
