A new 600,000-square-foot power transformer manufacturing facility will be constructed at the Shoals Research Airpark in Colbert County, Alabama, following a major expansion announcement by Virginia Transformer today, May 19, 2026.
The project, which represents the company’s seventh North American facility, will sit on roughly 90 acres. Once fully operational, the advanced manufacturing facility is projected to employ 1,100 people. On-site construction is scheduled to begin immediately, with initial production slated for January 2028.
Plant Specifications and Capabilities
The new facility will produce a wide range of power transformers, spanning capacities from 2 MVA up to 500 MVA. According to the company, the design, technology, and manufacturing processes will replicate and extend those used at its 500 kV factory in Rincon, Georgia.
The site will feature several logistics and operational integrations, including:
- Logistics: A dedicated Norfolk Southern rail spur for shipping and supply chain management, funded through the state’s “Growing Alabama” program.
- Automation: Automated warehousing systems designed to deliver raw materials directly to point-of-use locations within the plant, alongside a direct design-to-machinery interface.
- Operations: Digital manufacturing dashboards for management and a real-time online tracking portal for customers.
- Workforce: A dedicated, on-site training center for plant employees.
Market Drivers and Industrial Scope
The expansion aims to address rising domestic demand for power infrastructure, which is currently heavily reliant on overseas imports. The facility will supply transformers to several expanding sectors across the United States and Canada, including:
- Utilities and grid expansion
- Data centers and digital infrastructure
- Renewable energy and behind-the-meter power generation
- Heavy manufacturing, mining, and oil and gas operations
The Alabama project coincides with a separate expansion at Virginia Transformer’s Rincon facility, where the company plans to complete construction in March 2027 and increase installed capacity by 50 percent.
This project highlights a accelerating domestic manufacturing race to solve the nation’s power grid bottlenecks. It follows a similar mega-investment by Hitachi Energy, which has committed $457 million to build a massive large power transformer facility in South Boston, Virginia, as global and domestic manufacturers rush to establish North American production capacity.
Project Fact Sheet: Colbert County Power Transformer Plant
Overview
- Location: Shoals Research Airpark, Colbert County, Alabama
- Facility Size: 600,000 square feet on 90 acres
- Job Creation: 1,100 positions at full production
- Construction Start: Immediate
- Production Launch: January 2028
Technical & Operational Capabilities
- Production Range: Power transformers from 2 MVA up to 500 MVA
- Design Baseline: Modeled after the company’s 500 kV Rincon, Georgia facility
- Logistics: Dedicated Norfolk Southern rail spur and Platinum REDI site designation
- Technology: Automated warehousing, design-to-machinery interfaces, and digital dashboards
- Workforce Support: Dedicated on-site training center
Market Focus
- Target Sectors: Utilities, grid expansion, data centers, renewable energy, and heavy industry
- Geographic Scope: United States and Canada markets
- Strategic Purpose: Meeting domestic infrastructure demand currently served by overseas imports
