AS global demand for artificial intelligence (AI) infrastructure accelerates, Hitachi Energy has unveiled a major expansion of its manufacturing, research and development (R&D), and engineering capacity to meet rising needs for transformers, advanced grid technologies and digital solutions. Backed by a multi-year investment exceeding US$6 billion – the largest in the power-grid sector-the initiative reflects the company’s ambition to support a more sustainable and resilient energy future.
The surge in AI data centres is placing unprecedented strain on global supply chains. Market estimates indicate that between 90 and 125 GW of new AI data-centre capacity will be added between 2025 and 2030. This growth could require up to 1,400 power transformers, alongside significant volumes of switchgear, disconnectors, power-electronics systems and battery storage. However, lead times for large transformers already range from two to four years due to limited manufacturing capacity and raw material shortages.
In response, Hitachi Energy is scaling up production across multiple regions, as outlined in its Gridlocked? AI’s Energy Appetite position paper. The company is investing in facilities to boost output of high-voltage transformers, gas-insulated switchgear, advanced power electronics and digital automation systems. At the same time, it is expanding its global R&D footprint, focusing on digital grid management, power-system stability and next-generation transformer technologies.
These developments are particularly significant for Africa, where digitalisation is accelerating and interest from hyperscale cloud providers and AI firms is growing. South Africa remains the regional leader in data-centre capacity, while countries such as Kenya, Nigeria, Morocco and Egypt are emerging as key investment destinations. However, grid constraints, ageing infrastructure and limited transmission capacity continue to hinder sustainable growth.
Hitachi Energy aims to address these challenges by strengthening its regional presence and ensuring access to critical technologies. Its strategy emphasises localisation and partnerships, working closely with utilities, governments, industrial players and data-centre developers. Through customised engineering, service collaborations and digital solutions, the company seeks to improve grid visibility, optimise performance and enable reliable integration of renewable energy.
According to Mohamed Hosseiny, overseeing managing director for Africa, the company’s global investments are designed to meet local needs and support long-term development. By combining global scale with regional expertise, Hitachi Energy aims to help African markets build stable, adaptable and affordable power systems capable of supporting AI growth, electrification and broader economic progress.
