Data center transformers and switchgear: lead times, prices, suppliers

Transformers and switchgear are slow to buy because each is built to order, uses scarce inputs such as electrical steel, and is wanted by utilities as well as data centers. Reported lead times run from about 44 weeks for switchgear to well over 150 weeks for the largest transformers, and prices are up sharply since 2019.

Key numbers at a glance

These figures come from different sources, years and equipment definitions, so they are not directly comparable. Each one carries its source and date.

• Large power transformer lead time, commonly quoted: 36 months, with a maximum of 60 months (US Department of Energy report to Congress, July 2024).
• Power transformer average lead time: 128 weeks (Wood Mackenzie survey, Q2 2025, as reported by POWER magazine).
• Generator step-up transformer average lead time: 143 weeks in the same survey per the POWER executive summary, 144 weeks per POWER's January 2026 article. Over 160 weeks by Q1 2026 (Wood Mackenzie analyst, via Reuters, 9 July 2026).
• Switchgear average lead time: 44 weeks (Wood Mackenzie survey, Q2 2025).
• High-voltage circuit breaker lead time: 125 weeks in the second half of 2025, up from 77 weeks in 2023 (Wood Mackenzie analyst, via Reuters, 9 July 2026).
• Power transformer price change since 2019: up 77% (Wood Mackenzie, August 2025, as reported by POWER).
• Medium-voltage switchgear price change since 2021: up 50% (Wood Mackenzie, September 2025 report, as reported by POWER).
• Estimated 2025 shortfall: about 30% for power transformers and 10% for distribution transformers (Wood Mackenzie, August 2025, as reported by POWER).
• Estimated 2026 shortage: 15% for power transformers and 8% for substations (Wood Mackenzie press release, 31 August 2026).
• US data center capacity: about 24 GW now, 110 GW projected for 2030 (Wood Mackenzie analysis, via Reuters, 9 July 2026).
• Imports of bulk power equipment since the start of 2025: over 22 billion dollars (Wood Mackenzie press release, 31 August 2026).
• Share of large power transformers imported in 2019: 82% (US Department of Commerce estimate, quoted in the DOE report).
• Planned increase in US grain-oriented electrical steel output: up to 25%, due early 2028 (reported by SteelOrbis, 7 October 2026).

What these machines do, in plain words

An AI data center takes in electricity at very high voltage from the grid and has to step it down several times before it reaches a server rack. Three kinds of equipment do most of that work.

A transformer changes voltage. Think of it as a gearbox for electricity. A large power transformer is the biggest kind. The Department of Energy defines it as 100 MVA or more (MVA, megavolt amperes, is a measure of electrical capacity) and says units typically weigh between 150 and 400 tons. The same report estimates that 90 percent of electricity used in the US passes through one at some point.

Switchgear is the set of switches, breakers and protective relays that connect, isolate and protect circuits. If a fault occurs, it opens the circuit before equipment burns. Circuit breakers are the part that does the opening, and high-voltage ones are a separate, slower product from the medium-voltage cabinets inside a building.

A generator step-up transformer, or GSU, sits at a power plant and raises voltage for transmission. Data center builders compete with power plant developers for the same factories, which is why GSU numbers matter even though a data center does not buy a GSU itself.

Then there is the interconnection queue, the waiting line for a new customer or power plant to be allowed to connect to the grid. A data center needs the grid connection, a utility substation, and its own on-site transformers and switchgear. A delay in any of them delays the opening date.

How long the waits are

The Department of Energy's July 2024 report to Congress says that before the COVID pandemic it was possible to order a large transformer with a lead time of under a year. It says 36 months is now commonly quoted, with a maximum of 60 months. That report is the most authoritative public source in this article, though it is more than two years old.

Wood Mackenzie, a research firm, runs a regular survey of lead times. In its Q2 2025 survey, power transformers averaged 128 weeks, which was 10 weeks shorter than the quarter before. Generator step-up units averaged 143 weeks (the executive summary) or 144 weeks (the POWER article that cites the same survey). Switchgear averaged 44 weeks, a small drop. The report also noted that pad-mount transformers, reclosers and wire and cable were still seeing increases.

By 2026 the picture had moved again. A Wood Mackenzie analyst told Reuters in July 2026 that generator step-up transformers passed 160 weeks by the first quarter of 2026, compared with an average of 143 weeks in 2024. The same analyst said high-voltage circuit breaker lead times were 125 weeks in the second half of 2025, up from 77 weeks in 2023, and that some high-voltage transformers now take multiple years against about one year in 2020 and 2021.

Other sources give different numbers, mostly because they measure different things. A contractor-based summary published by Giga on 13 August 2026 relays early 2026 reports of about 52 weeks for standard switchboards and more than 84 weeks for power circuit breaker switchboards, with two to three years for medium-voltage gear built to data center specifications. Those are contractor quotes relayed second hand, not a survey, so treat them as a sign that real quotes can sit well above survey averages. A pv magazine article from 11 May 2026 reports PwC analysts saying high-capacity transformers can take as long as four years. The article does not link the underlying PwC analysis.

The point for a buyer is simple. A transformer ordered today for a site that does not yet have a building permit may arrive after the building is ready. That is why planning has changed, which we cover below.

Prices

Prices have risen along with lead times. Wood Mackenzie data, as reported by POWER in January 2026, shows power transformer prices up 77% since 2019, generator step-up units up 45%, and some distribution transformer classes up as much as 95%. A September 2025 report from the same firm, again as reported by POWER, shows circuit breakers up 47% and medium-voltage switchgear up 50% since 2021.

Looking ahead, the analyst quoted by Reuters in July 2026 said transformer costs could rise roughly 4% to 10% over the next year depending on type, and that breakers and switchgear were expected to face larger market deficits. That is notable because the September 2025 Wood Mackenzie executive summary described breakers and switchgear as being in market surplus at the time. The firm's own view appears to have shifted in under a year, which is a good reason to avoid quoting any single snapshot as permanent.

Prices also respond to inputs. The September 2025 report said electrical steel prices were volatile and had risen by upwards of 20% over a couple of months, and that contracts linked to a price adjustment formula would pass that on. Tariffs add another layer. POWER's January 2026 article mentions copper tariffs of up to 50% and wider steel and aluminum duties, without giving a single total effect.

Why the supply is tight

Steel. Transformer cores use grain-oriented electrical steel, known as GOES. The DOE report says GOES and the copper winding wire each account for roughly 25 percent of a large transformer's production cost. It describes the US as having a single GOES maker, Cleveland-Cliffs, which at the time could meet only 12 to 20 percent of domestic GOES demand, and says about 80 percent of GOES was imported in 2019. In October 2026 SteelOrbis reported that Cleveland-Cliffs is spending 200 million dollars at its Butler Works plant, with a 75 million dollar Department of Energy award, to raise output by up to 25 percent by early 2028, and described Butler Works as the sole US producer of GOES.

Few factories, built for a smaller market. The DOE report cites a Commerce Department estimate that in 2019 only 137 large power transformers (18 percent) were made in the US for US use, while 617 (82 percent) were imported. It put domestic capacity use at about 40 percent, with a maximum of about 343 units a year. Factories were not built for the current surge.

Demand from several directions at once. Wood Mackenzie data shows demand since 2019 up 119% for power transformers, 274% for generator step-up units, 116% for substation transformers and 34% for distribution transformers. Data centers are one driver among several: new power plants, grid hardening, electrification and replacement of old units all pull on the same suppliers. Wood Mackenzie's July 2026 analysis puts data centers at just under 2% of the electrical equipment market in 2020, with a possible 40% under accelerated scenarios.

An aging fleet. POWER reports Wood Mackenzie and DOE figures that about 55% of in-service distribution transformers, roughly 40 million units, are past expected service life or older than 33 years. Replacement demand does not pause for data centers.

Custom designs. Large units are engineered for a specific site and voltage, which limits how much a factory can build ahead of orders.

Who supplies them

None of the cited sources ranks suppliers, and this article does not either. These are the manufacturers named in the cited sources, with what was reported.

• Hitachi Energy: more than 1 billion dollars of announced US investment as of September 2025, including 457 million dollars at South Boston, Virginia, described as the largest large power transformer plant in the US by 2028 (POWER, January 2026).
• Siemens Energy: a large power transformer plant in Charlotte, North Carolina, with production expected in early 2027. POWER gives 150 million dollars for the plant, while pv magazine gives 421 million dollars for Siemens' Charlotte transformer factory. The figures may cover different scopes, so both are shown.
• Eaton: a 340 million dollar three-phase transformer facility in South Carolina targeting a 2027 start (POWER). Eaton also reported strong results in July 2026, covered below.
• Others named by POWER: Prolec GE (more than 300 million dollars across sites), Virginia Transformer Corp. (a 40 million dollar Georgia expansion, with output up 70%), WEG, ERMCO, Central Moloney, MGM Transformer and HD Hyundai Electric.
• Aggregate: Wood Mackenzie's September 2025 report counted nearly 1.8 billion dollars of announced North American transformer investment since 2023. These are announcements, and plants that open in 2027 or 2028 do not help a project that needs equipment in 2026.

On the buyer side, Eaton's July 2026 filing shows demand in its Electrical Americas segment: sales of 3,951 million dollars in Q2 2026, up 18% organically, rolling 12-month orders up 41%, and backlog at the end of June 2026 up 33% from a year earlier. Its Electrical Global segment, which includes the Boyd Thermal business, showed backlog up 103%. Schneider Electric reported record second quarter 2026 revenue of 11.5 billion euros, up 17% organically, with North America up 23%. Neither number is specific to data centers.

Imports, policy and a disagreement

Many data center builders have used imported equipment to shorten waits. A Wood Mackenzie press release of 31 August 2026 says US Executive Order 14420 bans imported bulk power equipment from certain nations, mainly China, and that the Department of Energy has 120 days to interpret and implement it. The firm says imports of bulk power equipment since the start of 2025 exceed 22 billion dollars, that China accounts for almost all of that, and that data centers are expected to bear most of the impact because they used Chinese units to shorten lead times. The analyst also says it is still unclear how the bulk power definition applies to data center loads. Anyone affected should read the order text and the Department of Energy's implementing guidance before relying on any summary of it.

Not everyone agrees that manufacturing capacity is the main problem. POWER's January 2026 article quotes one transformer reseller who says there is not a shortage, that standard substation transformers can be delivered about 12 to 14 months after engineering approval, and that the real bottleneck is utility and contractor procurement practice. POWER itself says that claim is hard to verify. It appears here because it is a real minority view, not because the evidence supports it.

How buyers are adapting

The Reuters report of 9 July 2026 describes several tactics. The chief executive of one California municipal utility said it had moved from buying about a year ahead to a three-year horizon and now buys for projects five years out, with about three quarters of its bids coming from foreign suppliers such as in China and South Korea. Others buy early, refurbish older transformers, require pre-payment for long-lead items, spread orders across suppliers and regions, and in some cases offer better payment terms or pay up front to secure earlier production slots. A pv magazine article reports an engineering firm describing buying production slots before a site is chosen.

Looking further out, Nvidia has said it is leading a move to 800 volt direct current power distribution for racks above 1 MW, starting in 2027, converting 13.8 kV AC grid power at the data center edge, with Eaton, Schneider Electric and Vertiv listed among power system partners. Nvidia's own blog says it and partners are still studying the cost and safety of solid-state transformers against traditional ones. That is a company roadmap, not a delivered product, and it does not solve today's lead times.

What is firm and what is uncertain

Firm enough to plan around. Large units take years, not months. Prices rose a lot between 2019 and 2025. The DOE and Wood Mackenzie agree that demand rose sharply and that GOES supply is concentrated.

Uncertain. Exact lead times depend on voltage, size, factory slot and contract terms, and surveys, contractor quotes and press reports disagree. Whether breakers and switchgear are in surplus or deficit changed between 2025 and 2026 reports. Prices could move either way with tariffs and steel. The effect of Executive Order 14420 on data centers is not settled. Capacity announced for 2027 and 2028 may arrive late. The DOE report's import and steel shares are from 2019 and may have moved.

What to watch next

• Department of Energy guidance under Executive Order 14420, due within 120 days of the order according to Wood Mackenzie.
• The next Wood Mackenzie lead time survey and whether the 2025 easing in power transformer waits returns or reverses.
• Production start at the Siemens Energy Charlotte and Hitachi Energy South Boston plants.
• Progress on the Butler Works steel expansion, which SteelOrbis dates to early 2028.
• Whether 800 volt direct current designs reduce the number of conventional transformers a campus needs.

For related background see what Anthropic's compute commitments involve and OpenAI's Stargate and 26 gigawatts explained.

Safeguard has no role in buying this hardware, but if your team runs software that monitors it, Safeguard can build an SBOM and scan its dependencies, and there is a free scan at https://gold.safeguard.sh/scan.

Quick check

Sources

• US Department of Energy, Large Power Transformer Resilience Report to Congress, July 2024: https://www.energy.gov/sites/default/files/2024-10/EXEC-2022-001242%20-%20Large%20Power%20Transformer%20Resilience%20Report%207-10-24.pdf
• POWER magazine, Transformers in 2026: shortage, scramble or self-inflicted crisis, 2 January 2026: https://powermag.com/transformers-in-2026-shortage-scramble-or-self-inflicted-crisis/
• POWER magazine and American Clean Power, Making the Connection executive summary, September 2025 (Wood Mackenzie data): https://www.powermag.com/wp-content/uploads/2026/01/making-the-connection-executive-summary-september-2025.pdf
• Wood Mackenzie press release, US executive order banning Chinese bulk power equipment set to worsen critical transformer shortage, 31 August 2026: https://www.woodmac.com/press-releases/us-executive-order-banning-chinese-bulk-power-equipment-set-to-worsen-critical-transformer-shortage/
• Reuters via Kitco, US power companies scramble to secure equipment as surging data center demand strains supplies, 9 July 2026: https://www.kitco.com/news/off-the-wire/2026-07-09/us-power-companies-scramble-secure-equipment-surging-data-center
• pv magazine USA, US transformer market faces severe supply constraints as lead times extend to four years, 11 May 2026: https://pv-magazine-usa.com/2026/05/11/u-s-transformer-market-faces-severe-supply-constraints-as-lead-times-extend-to-four-years/
• Giga, Lead time delays for data centers, 13 August 2026: https://www.gigaenergy.com/blog/lead-time-delays-for-data-centers
• SteelOrbis, Cleveland-Cliffs hosts US energy officials at Butler Works to showcase GOES expansion, 7 October 2026: https://www.steelorbis.com/steel-news/latest-news/cleveland-cliffs-hosts-us-energy-officials-at-butler-works-to-showcase-goes-expansion-1482174.htm
• Eaton Form 8-K exhibit, second quarter 2026 results: https://www.sec.gov/Archives/edgar/data/0001551182/000155118226000027/etn06302026exhibit99.htm
• Schneider Electric 2026 half year results summary, EMR: https://www.emr-online.com/schneider-electric-2026-half-year-results/
• Nvidia developer blog, 800 V HVDC architecture for AI factories: https://developer.nvidia.com/blog/nvidia-800-v-hvdc-architecture-will-power-the-next-Generation-of-ai-factories

Last reviewed: 19 October 2026.