Heron Power, the energy infrastructure startup founded by former Tesla executive Drew Baglino, has secured $140 million in a Series B round to accelerate production of its solid-state transformer technology.
The raise follows a $38 million Series A completed in May, marking a rapid follow-on round driven by strong customer demand. According to Baglino, customers have already expressed interest in more than 40 gigawatts of transformer capacity, prompting the company to expand its ambitions.
“If our customers are leaning in, we need to lean in as well,” Baglino said, emphasizing the urgency of scaling production.
The Series B was led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures, with participation from Capricorn Investment Group, Energy Impact Partners, Gigascale Capital, and Valor Atreides AI Fund.
Data Centers Fuel Surging Demand For Next-Generation Grid Technology
Heron Power’s momentum reflects the accelerating energy demands of AI-driven data centers, which require faster, more efficient ways to deliver electricity to increasingly power-hungry server infrastructure.
Baglino, who spent nearly two decades at Tesla leading powertrain and energy divisions, is applying large-scale manufacturing experience to modernize grid hardware that has remained largely unchanged for over a century.
Traditional iron-core transformers are reliable and relatively inexpensive, but they are bulky, heat-intensive, and limited in flexibility. Solid-state transformers aim to replace these legacy systems with compact, semiconductor-based alternatives that combine multiple functions into a single device.
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Solid-State Transformers Designed For AI-Era Infrastructure
Heron Power’s flagship product, Heron Link, converts medium-voltage electricity into the 800-volt architecture required by Nvidia’s reference rack designs. Each unit handles up to 5 megawatts and contains modular power conversion components that can be individually replaced within minutes, reducing downtime compared to traditional systems.
The technology integrates semiconductor-based controls, enabling intelligent power management across diverse energy sources including solar, wind, and battery storage. Each unit also includes fast-discharge lithium-ion batteries capable of supplying up to 30 seconds of backup power, allowing data centers to eliminate separate uninterruptible power supply systems.
By consolidating equipment and reducing complexity, Heron Power claims it can remove up to 70 percent of traditional infrastructure components in certain data center applications, potentially delivering substantial cost savings.
Beyond Data Centers: Solar And Grid-Scale Storage
While AI infrastructure is a major growth driver, Baglino noted that data centers currently represent roughly one-third of the company’s business. The remainder is split between solar projects and grid-scale battery installations, both of which benefit from the responsiveness and flexibility of solid-state transformers.
With the new funding, Heron Power plans to construct a manufacturing facility capable of producing 40 gigawatts of transformer capacity annually. That output would represent approximately 10 to 15 percent of annual production outside China.
Pilot production is expected to begin in early 2027, with full-scale ramp-up projected over the following two years.
Competing In A Modernizing Grid Market
As aging grid infrastructure approaches replacement cycles globally, competition in the solid-state transformer market is intensifying. However, Heron Power’s capital base and Baglino’s track record in scaling advanced manufacturing could position the company strongly within the sector.
The company’s strategy centers on speed, modularity, and integrated energy intelligence, targeting the intersection of AI growth and grid modernization.
About Heron Power
Founded by Drew Baglino, Heron Power develops solid-state transformer technology designed to modernize electricity infrastructure for data centers, renewable energy systems, and grid-scale storage. Its Heron Link platform integrates power conversion, intelligent control, and backup functionality into modular units engineered for high-performance, AI-era energy demands.
