Power management company Eaton announced Wednesday that it will invest $340 million to increase U.S. production of its three-phase transformers in response to the ongoing transformer shortage.
The company aims to help meet “record demand … from utility, large commercial, industrial and data center customers.” Production and hiring is expected to begin in 2027 at an Eaton production facility in Jonesville, South Carolina.
A September report from the National Infrastructure Advisory Council found that over the last few years, the lead time for utilities to procure new transformers has more than doubled, to 120 weeks. Electricity demand from data centers is expected to exacerbate delays.
Eaton plans to convert an existing facility in Jonesville into a manufacturing site for the transformers.
“Eaton will continue to manufacture three-phase transformers [at two facilities] in Waukesha, Wisconsin,” the release said. “The company will also continue to produce single-phase, pole-mount and pad-mount transformers in Nacogdoches, Texas.”
The project is supported by “local, state and federal economic development incentives,” Eaton said. “The company is also working closely with readySC and regional schools to support hiring and industry training.”
This $340 million investment contributes to Eaton’s investment of more than $1 billion in North American manufacturing since 2023, according to the release.
“Eaton is also increasing supplies of power distribution solutions, including transformers and voltage regulators; as well as electrical assemblies: switchgear, switchboards and circuit breakers; and solutions supporting electric grid infrastructure projects,” the company said.
