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Henan Huaxiang Electric Co., Ltd. is a professional manufacturer of power equipment.

Transformer Industry Faces Capacity Crunch

May 21,2025

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The development of AI technology and the return of manufacturing from North America have made the production capacity of transformers tight and extended the delivery cycle.

Recently, according to multiple overseas industry media reports, due to the development of AI technology and the reshoring of manufacturing in North America, the production capacity of transformers has become tight, and the delivery cycle has been extended. Orders from some large factories have been scheduled until 2026, with the delivery cycle stretching from 6 - 8 months to 18 - 24 months, or even longer.​
The increasing demand for data centers driven by AI development requires a large number of transformers to ensure stable power supply. Meanwhile, the reshoring of manufacturing in North America has led to a surge in electricity demand in local industrial parks. As a result, the demand for transformers in the market has far exceeded expectations. Industry insiders suggest that manufacturers should consider expanding production capacity, and relevant government departments could introduce policies to encourage the development of the transformer industry to ease the current supply - demand imbalance.