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America’s grid upgrade hinges on a 400-ton machine designed in the 1800s — and just one U.S. mill makes the special steel inside it
Between 2019 and 2025, demand for generator step-up transformers, those that connect power plants to the transmission grid, nearly tripled.
Dextape brief
A University of Colorado Boulder researcher argues that expanding the U.S. grid depends on large power transformers, machines whose basic design dates to the late 1800s. Each unit can weigh around 400 tons and is largely custom-built, so delivery can take more than three years. Demand for step-up units nearly tripled from 2019 to 2025, while step-down demand more than doubled, and costs rose 80%. Only a handful of mills worldwide make the grain-oriented steel these units need, and just one is in the United States. Copper is also in short supply. The researcher notes federal agencies have recommended standardized designs and grid-enhancing technologies that can add transmission capacity while new transformers are awaited. Longer term, the author suggests more domestic steel, copper and transformer production.
Why it matters: Grid expansion for renewables, gas plants and AI data centers all depend on these transformers, so supply limits could shape energy costs and project timelines for crypto readers.
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