Power management company Eaton has announced a significant investment of $340 million aimed at boosting the production of three-phase transformers in the U.S. This decision comes as a response to the current shortage of transformers, which has been affecting various sectors.
The company stated that this move is essential to address the rising demand from utility providers, large commercial businesses, industrial clients, and data centers. The new production efforts will take place at an existing facility in Jonesville, South Carolina, with operations expected to commence in 2027.
Recent findings from a report by the National Infrastructure Advisory Council highlighted that the wait time for utilities to order new transformers has more than doubled to around 120 weeks in the past few years. This situation is likely to worsen due to increasing electricity needs from data centers.
Eaton is converting its Jonesville facility to focus on transformer manufacturing. Additionally, the company will maintain its current production of three-phase transformers at two facilities in Waukesha, Wisconsin, and continue to produce single-phase transformers in Nacogdoches, Texas.
The investment is bolstered by various economic development incentives at local, state, and federal levels. Eaton is collaborating with readySC and regional educational institutions to facilitate hiring and training for the industry.
This latest investment brings Eaton’s total commitment to North American manufacturing to over $1 billion since the beginning of 2023. The company is also increasing supplies for power distribution solutions, including transformers, voltage regulators, and other critical electrical components essential for strengthening the electric grid.