Hitachi: US$400m for Energy Efficient Tech of the Future – EQ

In Short : Hitachi Energy is investing $400 million in cutting-edge energy-efficient technologies to meet rising global demand. The initiative includes expanding transformer manufacturing, modernizing facilities, and supporting grid infrastructure projects. With investments in AI-driven energy solutions and renewable integration, Hitachi aims to enhance sustainability and power efficiency, reinforcing its commitment to the future of clean energy.

In Detail : Hitachi has launched a new corporate venture capital (CVC), pushing its total investments in such initiatives to US$1bn.

The newly announced fund is designed to channel funds into startups that are at the forefront of several cutting-edge sectors including data centres, distributed energy systems, industrial AI and the future of work.

Hitachi is also setting its sights on pioneering fields such as bio, quantum computing, nuclear fusion, life sciences and space technologies.

“To create the future, you must first invest in it,” shares Nathan Knight, VP & Managing Director ANZ at Hitachi Vantara. “By leveraging its CVC investment and R&D, Hitachi aims to anticipate the next technological and social turning points.

“These moments in time mark major shifts in the development and adoption of particular technologies.”

Accelerating innovation and growth

The act of launching a CVC positions Hitachi as a catalyst in the global innovation ecosystem.

This move is not just about financial investment but also about fostering a culture of innovation and collaboration across the globe.

Hitachi’s approach underlies a broader strategy to harness and promote innovation through partnerships with visionary entrepreneurs and businesses worldwide.

Under the leadership of Toshiaki Tokunaga, who will be appointed as Representative Executive Officer, President & CEO in April 2025, Hitachi aims to realise its ‘True One Hitachi’ ethos. This prioritises digital innovation at the company’s core, whilst also accelerating the sustainable growth of its Social Innovation Business.

Hitachi is not only enhancing its current businesses but is also vigorously venturing into new technological arenas to seize future opportunities for growth, driven partly by disruptive technologies like generative AI (Gen AI).

Keiji Kojima, President and CEO of Hitachi, Ltd. says: “Hitachi’s efforts in CVC, which began in 2019 with US$150m, have expanded to US$1bn in 5 years, driven in part by the disruptive innovation brought about by generative AI (Gen AI).

“With technology trends shifting at an unprecedented speed, it is important to identify the next global change point while leveraging the external ecosystem in addition to developing cutting-edge technologies through R&D, for further growth of the Social Innovation Business.

“We hope that the establishment of the fourth fund will accelerate our quest for new growth opportunities.”

Empowering a sustainable technological future

As the demands for connectivity and artificial intelligence surge, so does the load on data centres, making sustainable and scalable power solutions indispensable.

Hitachi is deeply involved in addressing these demands through innovative data centre solutions and a robust strategy of co-creation, bringing together clients, partners and internal teams to spearhead significant advancements in the field.

“A standout example of this approach is a recent project where Hitachi Vantara helped a client realise their vision of the “data centre of the future.” By integrating expertise in smart grids, advanced data systems and green coding, Hitachi Vantara developed a sustainable infrastructure blueprint,” shares Simon Ninan, Senior Vice President, Business Strategy at Hitachi Vantara via a blog post.

“This design incorporated renewable energy, AI-driven resource optimisation, and dynamic carbon reduction algorithms, demonstrating how co-creation can produce scalable, transformative results.”

Additionally, South Africa ICT provider Gijima partnered with Hitachi to modernise its infrastructure and meet ambitious sustainability targets. By replacing traditional spinning disk storage with energy-efficiency all-flash arrays, Gijima was able to reduce its data centre footprint by 66%, whilst also lowering their power consumption and cooling needs.

Simon adds: “As the world grapples with no shortage of environmental challenges, the blueprint for success is clear: integrate, innovate and collaborate. Responsible, sustainable strategies are good for the planet and good for business.

“Through these efforts, data centers can fulfill their critical role in the digital economy while safeguarding the planet for future generations.”