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World’s largest transformer maker warns of supply crunch

AI data centre demands and renewable energy’s dispersed nature are driving equipment orders for power grid upgrades

The world’s largest producer of transformers has warned its industry is “overwhelmed” and unable to meet exploding demand for grid equipment, threatening delays to vital infrastructure projects that would boost the share of renewable energy across the globe.

Andreas Schierenbeck, chief executive of Hitachi Energy, a rapidly growing division at the heart of Japan’s third-most valuable public company, said transformer manufacturers would be hard-pressed to boost output quickly enough to meet demand to upgrade grids, with supplies strained by the growing needs of data centres used for generative artificial intelligence.

Hitachi Energy CEO Andreas Schierenbeck
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