Japanese industrial group Hitachi, Ltd. has formalised new commitments aligned with the strategic investments jointly announced by the governments of Japan and the United States. These initiatives include modernising the US power grid, national electrification, and the construction of next-generation Small Modular Reactors (SMRs). The projects aim to address rising electricity demand, particularly driven by the growing number of artificial intelligence data centres.
A memorandum of understanding with the US Department of Commerce
Hitachi has signed a memorandum of understanding (MoU) with the United States Department of Commerce (DOC) to promote investment in critical energy infrastructure. The agreement includes plans to expand Hitachi Energy’s transformer production capacity in the US, in response to increasing grid demand from data centres. The group is also assessing the localisation of other energy technology manufacturing in the United States, working with federal authorities to streamline permitting processes.
This cooperation is part of a shared strategy by the US and Japan to strengthen energy supply security and industrial resilience. Hitachi stated that the initiative would result in high-quality job creation and increased innovation support in the affected regions.
The BWRX-300 SMR central to nuclear strategy
Alongside its electrification efforts, Hitachi supports the development of BWRX-300 SMRs through its joint venture with GE Vernova Hitachi Nuclear Energy, held 60% by GE Vernova and 40% by Hitachi. This small light-water reactor model offers improved economic efficiency while incorporating advanced safety features. It is designed to deliver stable, low-carbon energy in response to rising electricity consumption.
The group will deploy its engineering, procurement and manufacturing capabilities to assist in the deployment of these reactors in the United States. The technology supports the diversification of the national energy mix amid renewed interest in civilian nuclear investments across North America.
Ongoing large-scale industrial investment
In September 2025, Hitachi had already announced a $1bn investment in the US—its largest ever in the country’s electrical industry. The funds are dedicated to boosting transformer and high-voltage equipment manufacturing to meet AI and digital infrastructure growth. This latest announcement builds on that effort by further expanding the company’s US industrial footprint.
The group plans to explore additional industrial opportunities to support the structural transformation of the US energy sector, leveraging government partnerships and its longstanding expertise in energy technologies.
