Eaton Expands U.S. Switchgear Manufacturing to Support Data Center Growth
Global energy management firm Eaton will invest $30 million to build a new switchgear manufacturing plant in Nebraska.
The capital investment plan centers around production of medium-voltage switchgear which can meet in-house energy management needs for data centers, utility grids and industrial power applications. It follows Eaton’s previously announced $500 million commitment to expanding its manufacturing footprint across the U.S. and North America amid the AI and cloud-based computing boom.
The facility will be in Bellevue near Omaha, Nebraska. The engineered-to-order switchgear produced in the new facility can be integrated into Eaton’s prefabricated power systems and at high volume to meet the “speed to power” needs of AI data center customers.
“Eaton is making bold investments to drive growth—expanding our U.S. manufacturing footprint, adding jobs and helping customers accelerate projects,” said Mike Yelton, president, Electrical Sector at Eaton, in a statement. “We’ve reimagined how data centers are built and are providing a blueprint for rapid, repeatable deployment. As we continue to invest in U.S. manufacturing, we’re grateful for the strong support from the state of Nebraska and the city of Bellevue. Our newest manufacturing investment builds on the incredible abilities of our long-term employees in the region.”
The U.S. switchgear market is forecast to expand from $18 billion to more than $31 billion by 2034, according to research by Global Market Insights. This comes as data center capacity growth may demand more than 125 GW in new energy generation by the early 2030s.
In anticipation of this growth, Eaton has been expanding its U.S. footprint. In Omaha, Eaton will expand its local manufacturing capacity by moving to a new facility six miles from its current site. Existing Eaton employees will transition to the new location over time.
The global energy management and control technology producer also 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.
Next-Gen Digital Infrastructure Needs Diverse Energy Playbook
New and Free E-Book from EnergyTech
Follow ET on LinkedIn
About the Author
EnergyTech Staff
Rod Walton is head of content for EnergyTech.com. He has spent 17 years covering the energy industry as a newspaper and trade journalist.
Walton 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.
He can be reached at [email protected].
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.
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.