Rail is essential to America’s energy buildout

On May 19, Virginia Transformer announced plans to build a new 600,000 square-foot, state-of-the-art, rail-served power transformer plant at the Shoals Research Airpark in Colbert County, Alabama. The plant, expected to employ 1,100 people, will be capable of producing a wide range of power transformers – from 2 MVA up to 500MVA – expanding domestic capacity to support growing demand for energy infrastructure nationwide.

"For more than 50 years, Virginia Transformer's growth has been driven by our commitment to delivering for our customers – we are The Commitment Company," said Prabhat Jain, CEO of Virginia Transformer. "This investment represents the latest addition in our ongoing expansion across North America, will create our seventh manufacturing facility, and reflects our confidence in the markets and customers we serve, as well as our dedicated workforce.

"We are recognized throughout the industry as an engineering company that crafts and delivers premium-quality transformers within the shortest lead times—products designed for a 60-year service life," Jain added. "This investment strengthens that position and ensures we will continue scaling to meet our customers' evolving needs."

That demand is accelerating across sectors. Advanced manufacturing, mining, energy infrastructure, grid expansion, artificial intelligence, you name it… are all areas driving significant increases in electricity consumption. The backbone of the grid is large, custom-built power transformers – infrastructure moves best by rail. Transformers are among the most complex shipments in the industrial economy, often weighing hundreds of thousands of pounds and exceeding standard shipping dimensions. Their movement requires specialized equipment, precise routing, and tight coordination across the supply chain, making rail a natural fit, and the mode that can do it more sustainably.

“This is exactly the kind of partnership rail was built to serve,” said Norfolk Southern GVP Industrial Development Craig Hudson. “When you’re moving infrastructure at this scale, there’s no substitute for the efficiency, sustainability benefits, and safety of rail.”

The new advanced manufacturing plant will be built on approximately 90 acres within the Airpark and features a dedicated Norfolk Southern rail spur for shipping and supply chain needs made possible through the Growing Alabama program. In fact, Virginia Transformer’s decision to locate in Colbert County was heavily influenced by the site readiness approach from local, state, and private partners like Norfolk Southern. The rail-served property recently earned a platinum designation through the national REDI Sites Program, recognition granted to locations that meet the highest standards for development readiness. With existing rail access, strong utility infrastructure, and a skilled regional workforce, the site offered a shovel-ready solution aligned with the company’s need to move quickly.

For Norfolk Southern, the project reinforces the role of rail in supporting both industrial growth and the infrastructure behind a rapidly evolving energy landscape, connecting customers to the markets, resources, and strategic supply chain networks needed to keep pace with demand.