Demand for transformers and grid-connection infrastructure is surging due to the massive electrification of industry and transport, integration of renewable energy, and growth of AI data centers. Hitachi Energy is investing $1.5 billion to expand transformer manufacturing capacity to meet the increased demand, as lead times for large transformers have doubled since 2019. Global investment in grids is expected to exceed $500 billion by 2026, with companies like Kaufmann Electric and Waaree Energies investing in transformer manufacturing to address constraints in grid infrastructure construction. To speed up project realization, companies are focusing on standardization and closer collaboration with manufacturers through framework agreements, aiming to ensure timely delivery of grid connection equipment and support the growth of renewable energy projects.
https://www.pv-magazine.com/2026/02/27/global-energy-transition-hits-a-hardware-bottleneck/