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Building the Digital Age: Virginia Transformer Secures Data Center Deal

Transforming energy for America - The Virginia Transformer Corporation

Virginia Transformer Corporation, one of the powerhouses of North America’s power transformer industry, has secured major contracts to equip critical U.S. data centers. As demand for advanced infrastructure surges globally, VTC’s decades of expertise and innovation position it at the forefront of a rapidly evolving digital landscape.

Read on to discover all the must-know details about these contracts, as well as the underlying forces driving their necessity.

What is Virginia Transformer?

Behind the Backbone of Critical Data Center Infrastructure 

Although not widely recognized, Virginia Transformer Corporation (VTC) is the largest U.S.-owned power transformer manufacturer in North America. The company was founded in 1971 and is headquartered in Roanoke, Virginia.

Over the past 50 years, VTC has solidified its position as a trusted provider. Under optimal conditions, its transformers can last up to 60 years. Prabhat K. Jain, who serves as Chairman and CEO, is currently at the helm of VTC.

Specializing in custom-engineered transformers, the VTC  provides solutions across data centers, utilities, renewable energy, and specialty markets. Its product range includes transformers from 500 kVA to 500 MVA (core type) and up to 1,400 MVA (shell type).

The business operates manufacturing plants in Virginia, Idaho, Mexico, and India, with over 1,200 professional employees. It boasts one of the shortest lead times in the industry, making it a preferred supplier for critical sectors. 

Known as a leader in innovation and engineering excellence — over 20% of its workforce is dedicated to R&D alone. What’s more, as a privately held company, VTC is not publicly listed, allowing for tighter control of the behemoth’s decision-making. 

Major Data Center Contracts Secured: In-Detail

multiple contracts to supply power transformers for major data centers across the United States

Virginia Transformer Corporation has used its unique position to secure multiple contracts to supply power transformers for major data centers across the United States. The contracts involve delivering state-of-the-art transformers with production and shipment scheduled between 2026  and 2027.

Awarded by leading data center companies, these data centers will be deployed to locations in Arizona, Ohio, Texas, and South Carolina. The names of the awarding companies have not yet been divulged.

The transformers are to be custom-engineered and manufactured in the U.S. and designed to meet the high reliability and efficiency demands of critical data center operations. This includes cutting-edge platforms for cloud computing, artificial intelligence, and information processing. 

Data center downtime costs an estimated $5,600 per minute and up to $100,000 to $300,000 per outage. So, it’s no surprise that companies have returned to an industry stalwart with a track record of data center reliability and lifespan, like Virginia Transformer.

In fact, Virginia Transformer is renowned for producing transformers with a lifespan of 60 years, coupled with industry-leading short lead times. So, even in the unlikely event of the total loss of a data center, companies can expect relatively short replacement times.

The Growing Need for Data Center Capacity

The global demand for data centers is accelerating at an unprecedented pace, driven by rapid advancements in cloud computing, AI, IoT, and big data analytics. According to JLL’s 2025 Data Center Outlook, the global energy demand for data centers is expected to double within just five years.

The Need for Increased Data Center Capacity

In the U.S., data center storage alone is projected to grow from $33.7 billion in 2023 to $90.2 billion by 2030, at a CAGR of 23.3%, as reported by Research and Markets. Factors contributing to this expansion include the proliferation of hyperscale data centers and the increasing adoption of hybrid IT infrastructures.

Globally, the data center storage market is forecasted to grow from $123.6 billion in 2023 to $354 billion by 2030, at a CAGR of 16.2%. The snowballing requirements for scalable and high-performance storage solutions to manage massive datasets is what’s fueling this growth. 

The silver lining is that advancements in technologies like NVMe and hyper-converged infrastructure are enhancing efficiency and scalability.

Additionally, there’s a noticeable shift to liquid cooling and energy-efficient technologies driven by the sector’s sustainability efforts. With AI workloads requiring up to 300% more power, data centers are forced to adopt advanced cooling solutions to meet thermal and rising energy demands as well as stay within responsible sustainability guidelines.

Powering the Digital Age

Virginia Transformer Corporation exemplifies what can happen when proven industry giants commit to a culture of continuous innovation. By combining a leading provider's reliability and robust solutions with the agility and speed of an industry disruptor, VTC looks set to play a major role in powering the digital age.

Will the industry’s rapid evolution keep pace with the technology it supports, or will challenges outstrip innovations? For now, VTC seems to be riding the wave.

Topics: Contracts Technology