Heron Power Secures $140 Million for 40GW Transformer Facility

Energy infrastructure company Heron Power Inc. has successfully raised $140 million in funding to establish a state-of-the-art manufacturing facility for solid-state transformers in the United States. This facility, designed to produce 40 gigawatts of capacity, will support the company’s innovative Heron Link solution, which targets critical energy and artificial intelligence data center projects.

Founded in 2024 by former Tesla Inc. executive Drew Baglino, Heron Power aims to modernize electrical grid infrastructure by replacing traditional large-format transformers with advanced power electronics-based systems. The company’s focus lies in addressing grid interconnection challenges that arise from the increasing deployment of renewable energy sources, battery storage, and large data centers.

Revolutionizing Electrical Infrastructure

Heron Power’s flagship product, Heron Link, utilizes high-frequency power electronics to efficiently convert and regulate voltage between medium and low-voltage systems. This innovative design allows for bidirectional power conversion and enhanced voltage regulation, accommodating distributed energy resources and variable load conditions.

The platform that manages Heron Link facilitates the integration of generation, storage, and end-use infrastructure. It provides essential services such as voltage transformation, frequency management, and power conditioning while seamlessly interfacing with existing grid control systems. The integrated software enables operators to monitor performance and adjust operational parameters, thus fitting into utility workflows and large-scale energy projects.

“Too much of today’s electrical infrastructure is passive, clunky equipment designed decades ago,” said Drew Baglino, Chief Executive Officer of Heron Power. “At Heron, we are manifesting an alternative future, where modern power electronics enable projects to come online faster, the grid to operate more reliably, and scale affordably.”

The company aims to deploy its technology in various settings, including utility-scale solar installations, battery energy storage systems, and hyperscale data centers. These environments frequently face prolonged interconnection timelines due to transformer shortages and infrastructure bottlenecks. Heron Power’s modular systems are designed to fit within existing substations or distributed energy sites, facilitating grid expansion and electrification efforts.

Significant Investor Backing

The recent funding round was co-led by the Andreessen Horowitz American Dynamism Fund and Breakthrough Energy Ventures, with participation from other prominent investors including Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund, and Gigascale Capital.

“Heron Power isn’t just making a product that’s essential to bring new electricity generation online and support today’s data center buildout,” stated Erin Price-Wright, general partner at Andreessen Horowitz. “They are building the technology that will catapult our aging electric grid into the software-defined, AI-native twenty-first century. And they are manufacturing it at scale here in America.”

With this new funding, Heron Power has raised a total of approximately $178 million to date, positioning the company as a key player in the future of energy infrastructure in the United States.