Energy demand powers appetite for grid gear
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Hitachi Energy is ramping up operations in Westmoreland County. Photo: Courtesy of Hitachi Energy
Rising U.S. energy needs are driving a spike in power grid technology manufacturing in southwestern Pennsylvania.
Why it matters: Demand from data centers, electrification and renewable generators is pushing manufacturers to invest in key grid infrastructure like switchgears and circuit breakers — a subtle economic shift driven by the fast-evolving energy and tech industries.
Driving the news: Hitachi Energy is ramping up operations in Westmoreland County with a $70 million expansion of its existing Mount Pleasant factory, the company announced Tuesday. The plant, which produces high-voltage equipment, is doubling its output and adding a new facility nearby.
- The expansion will create more than 100 new jobs across its facilities, according to the company. "We are investing because we see a lot of need from our customers in the U.S. to expand their grid," said Anthony Allard, managing director of North America for Hitachi Energy.
Catch up quick: Last month, Mitsubishi Electric Power Products broke ground on a new $86 million switchgear factory and testing lab in Beaver County. The project will help meet rising electricity demand, create 200 new jobs and keep over 800 current jobs, according to the company. It's expected to be finished by summer 2026.
By the numbers: After two decades of little change, electricity consumption grew 2% in 2024 and is expected to keep rising by 2% annually through 2026, driven mainly by new semiconductor, battery factories and data centers, per the EIA.
- Demand for electrical equipment, especially switchgears and transformers, is expected to remain strong, per Wood Mackenzie.
What they're saying: "Right now, there is a huge demand for breakers in the network, mostly utility growth, renewable connection and data centers," says Luca Calamari, general manager of Hitachi's high voltage business in North America. "This trend is creating a huge need for breakers, and I would say there is a scarcity."
- Demand for grid equipment has surged so quickly in recent years that the supply industry was caught off guard, he said.
Zoom in: Hitachi's expansion will include expanded production lines, facility upgrades and a new workforce training center to support its growing operations.
Zoom out: The state is committing more than $329,000 in economic development and workforce grants to support the company's expansion.
What's next: Construction will start this year, and the facility is expected to reach full production capacity in 2026.