Hitachi Energy warns of transformer supply crunch due to rising demand

Hitachi Energy, the world's largest transformer maker, has warned of a significant supply crunch in the transformer industry. Demand for grid equipment is surging due to the needs of data centers and the expansion of renewable energy, leading to potential delays in infrastructure projects. Transformers, essential for efficient electricity distribution, now have a wait time of three to four years for utilities that haven't reserved them. This is a stark contrast to the previous availability of six to eight months, highlighting the industry's struggle to keep up with rising demand. Hitachi Energy plans to invest $6 billion and hire 15,000 workers to increase production capacity over the next three years. Despite this effort, experts predict the supply shortage will continue until at least the end of 2026.