Heron Power raises $140M to build 40GW US solid-state transformer manufacturing facility

Energy infrastructure company Heron Power Inc. announced today that it has raised $140 million in new funding to build a 40-gigawatt, highly automated U.S. manufacturing facility for Heron Link, the company’s solid-state transformer solution for critical energy and artificial intelligence data center projects.

Founded in 2024 by former Tesla Inc. executive Drew Baglino, Heron Power develops solid-state transformer systems designed to modernize electrical grid infrastructure.

The company is focused on replacing conventional large-format transformers with power electronics-based systems that are intended to address grid interconnection constraints associated with renewable energy, battery storage and large data center deployments. Heron’s approach centers on modular, software-integrated hardware that can be manufactured at large scale and deployed closer to load and generation assets.

The company’s core product Heron Link is a solid-state transformer that uses high-frequency power electronics to convert and regulate voltage between medium- and low-voltage systems. The design enables bidirectional power conversion and more granular voltage regulation while also supporting distributed energy resources and variable-load environments.

Heron’s platform, which manages Heron Link, manages interconnection between generation, storage and end-use infrastructure, including providing voltage transformation, frequency management and power conditioning while interfacing with grid control systems. The software layer allows operators to monitor performance and adjust operating parameters and, in doing so, integrate into utility workflows and large-scale energy projects.

“Too much of today’s electrical infrastructure is passive, clunky equipment designed decades ago,” explains Chief Executive Officer Drew Baglino. “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’s deployment targets include utility-scale solar installations, battery energy storage systems and hyperscale data centers requiring high-capacity grid connections, environments that often face long interconnection timelines due to transformer shortages and infrastructure bottlenecks. By using power electronics-based systems with a modular footprint, the technology is designed to fit into existing substations or distributed energy sites, supporting grid expansion and electrification projects.

The Series B funding round was co-led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures, with Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund and Gigascale Capital also participating.

“Heron Power isn’t just making a product that’s essential to bring new electricity generation online and support today’s data center buildout,” said Erin Price-Wright, a 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.”

The new funding takes the total raised by Heron to approximately $178 million.

Image: Heron Power