Their new Waco facility is expected to unlock $1billion in production capacity to power data centers, energy transition, and industrial reshoring.
WACO, Texas—California-based MGM Transformers acquired Texas-based VanTran Transformers in 2024, forming a combined company that unites decades of engineering expertise in dry-type and liquid-filled transformer technologies, according to a release from MGM Transformers.
Now, a new 430,000-square-foot advanced manufacturing facility recently opened by MGM Transformers and VanTran Transformers in Waco is expected to unlock more than $1 billion in annual transformer production capacity over the next five years, providing a major boost to domestic energy infrastructure and industrial resilience.
The new plant, expected to create 700 high-quality American jobs over the next five years, is said to represent a strategic investment in strengthening the American grid and advancing the nation’s electrification goals. It will focus on producing custom liquid-filled transformers to meet soaring demand from data centers, renewable energy, EV charging infrastructure, and utilities, the release stated.
“With this facility, we’re not just growing—we’re redefining the scale of American manufacturing,” said Doug Banty, CEO of MGM Transformers, in a statement. “We’re proud to create jobs, reduce lead times, and deliver mission-critical infrastructure—made in America, for America.”
Ty Gayeski, president of VanTran Transformers, said that VanTran “has been part of the Waco community for over 60 years.”
“This expansion is about scaling our impact. We’re investing in the future of American industry, right here in Central Texas,” he said in the release.
Transformers play a vital role in the modern electric grid—powering the infrastructure behind AI data centers, clean energy, and the reshoring of U.S. manufacturing. The U.S. transformer market is projected to grow from $8.3 billion in 2022 to over $14 billion by 2032, underscoring the urgent need for domestic production capacity at scale, according to the release.
The Waco facility also strengthens national resilience amid global supply chain disruptions. By expanding U.S. manufacturing capacity, VanTran and MGM Transformers are helping reduce reliance on foreign suppliers and secure America’s energy future.
“I am excited about the opportunities being brought to Waco by VanTran and MGM Transformers, which not only advances American energy infrastructure but also strengthens our local economy,” said U.S. Rep. Pete Sessions, in the release. “This investment in American manufacturing will create high-quality jobs, foster innovation, and ensure that Texas remains at the forefront of energy advancements. I look forward to seeing the positive impact this facility will have on community.”
With a workforce of nearly 250 people, the new facility builds on VanTran’s 60-year legacy in Waco and solidifies the companies’ long-term commitment to the region.
“VanTran has demonstrated unwavering dedication to Waco for over 60 years, and we are thrilled that both they and MGM Transformers have chosen our city for this significant expansion,” said Matt Meadors, president and CEO of the Greater Waco Chamber, in the release. “Their investment underscores Waco’s appeal as a center for growth and innovation.”
MGM Transformers, founded in 1974, describes itself as “one of the largest distribution transformer manufacturers in North America.” The company serves a variety of industries, including data center, grid, manufacturing, and commercial and industrial (C&I), by offering a full range of transformers, from 10kVA low-voltage to 10MVA medium-voltage units in both dry and liquid configurations.
VanTran Transformers, founded in 1963 in Vandalia, Illinois, said in the release that it provides high-quality, custom distribution class transformers to meet the unique demands of the electrical industry. As the market shifted towards underground infrastructure, VanTran said it emerged as a trusted partner, delivering large-capacity kVA transformers designed for specific applications. Today, the company provides products tailored for utilities, industrial, and commercial applications.
“At VanTran, we understand that each project is unique, and we pride ourselves on a customer-first approach to meet the ever-evolving needs of our clients,” the company said in the release.