Virginia's Data Center Boom Spurs Over $50 Million Investment by Eaton in Henrico County
Power management and integration firm Eaton is expanding and centralizing its manufacturing footprint in the heart of data center growth in Virginia.
The global energy management and control technology producer is investing more than $50 million to build out a new manufacturing campus in the Richmond area in Henrico County. Virginia, particularly the northern part of the commonwealth, has more installed data center density than any other state in the U.S.
The investment will more than double Eaton’s footprint in Richmond, manufacturing static transfer switches, power distribution units and remote power panels. Eaton expects production at the new 350,000-square-foot campus to begin in 2027.
“Eaton is uniquely positioned to help our data center customers meet the rapidly increasing power requirements for AI factories through our expansive manufacturing footprint, and our focus on innovation and engineering excellence,” said Aidan Graham, senior vice president and general manager of Critical Power Solutions at Eaton, in a statement. “We’re continuing to invest in U.S. manufacturing and are thankful for the strong collaboration and support in Virginia. This latest manufacturing expansion builds on our history in Virginia and reflects on the incredible abilities of our longtime local employees.”
The rise of artificial intelligence capabilities and training models, as well as cloud-based computing centers and industrial automation, is expected to drive new demand for power generation by more than 125 GW through the rest of this decade. Studies indicate that a majority of companies already are deploying generative AI in their work plans, while analysis by research firm McKinsey predicts the commercial and industrial sectors could invest about $7 trillion of capital expense on data center infrastructure globally by 2030.
The expanded plans for Henrico County should add 200 new jobs beginning in 2026, according to Eaton, although it is consolidating local manufacturing in Richmond from three nearby facilities all within a few miles of the Henrico County plant.
The project is supported by state and local economic development incentives.
“Eaton’s latest investment in Henrico is proof that Virginia companies and workers are stepping up to meet our growing power needs,” said Governor Glenn Youngkin. “The only thing better than bringing a new business to Virginia is watching an existing Virginia business expand. By producing even more critical power equipment in the Commonwealth, Eaton is helping drive Virginia’s future and strengthening our competitive edge.”
Eaton is one of numerous energy infrastructure which have expanded U.S. manufacturing capabilities in recent years. Others include Schneider Electric, ABB, Fluence Energy and Siemens, which last month announced spending plans of about $10 billion to expand U.S. operations.
Eaton, like the others, also is growing its already sizable footprint in distributed energy infrastructure and digital technology. The company is partnering with EV charging firm ChargePoint and microgrid modeling and design firm Xendee focusing on on-site and co-located power solutions.
“To really scale electrification, you need collaboration across industries,” Paul Ryan, vice president and general manager of energy transition at Eaton, said when the companies announced details of the alliance at RE+ earlier this year. “I don’t believe any company can do this on its own.”
As Schneider Electric CEO Olivier Blum pointed out during the Innovation Summit, some 80-plus percent of the world’s companies already are implementing AI technologies in everyday and long-term operations. These could include anything from predictive maintenance or digital twinning to generative AI for marketing purposes.
“AI is touching every aspect of our lives,” Blum pointed out.
Future conferences covering the intersection of energy and AI will include the Microgrid Knowledge 2026 Conference, happening May 4-6 in Orlando, and the Data Center Frontier Trends Summit unfolding August 4-5 in Reston, Virginia.
About the Author
Rod Walton, EnergyTech Managing Editor
Managing Editor
For EnergyTech editorial inquiries, please contact Managing Editor Rod Walton at [email protected].
Rod Walton has spent 17 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.
Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World.
EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.
He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023
Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.