Heron Power raises $140M to ramp production of grid-altering tech

Source: TechCrunch

Heron Power, founded by former Tesla executive Drew Baglino, announced a $140 million Series B round to build gigawatts of solid‑state transformers for data centers and the grid.

Funding round

• Series B: $140 M, 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.
• Previous round: $38 M Series A in May 2025.

Baglino said the company didn’t need the money, but customer interest in more than 40 GW of solid‑state transformers prompted the raise. “If our customers are leaning in, we need to lean in as well,” he told TechCrunch.

Why solid‑state transformers?

Traditional iron‑core transformers have been used for over a century. They are inexpensive and efficient but bulky, generate heat, and require multiple pieces of equipment. Solid‑state transformers (SSTs) offer several advantages:

• Smaller footprint – replace several pieces of equipment.
• Higher efficiency – semiconductor‑based conversion reduces losses.
• Intelligent power management – can handle inputs from wind, solar, batteries, etc.
• Rapid fault handling – modules can be swapped in ~10 minutes versus days for monolithic units.
• Integrated energy storage – built‑in lithium‑ion batteries provide ~30 seconds of power to smooth transitions to backup sources, potentially eliminating uninterruptible power supplies (UPS).

Heron Link product

• Voltage conversion: Medium‑voltage to 800 V (the voltage used in Nvidia’s reference rack designs).
• Power rating: 5 MW per unit, composed of tens of modular converters.
• Modular design: Faulty modules can be replaced in about 10 minutes.
• Integrated batteries: Deliver 30 seconds of backup power, enabling UPS‑free operation.
• Cost & reliability: Baglino claims up to 70 % of traditional gear can be removed, potentially yielding order‑of‑magnitude savings for some data‑center applications.

Market focus

• Data centers: Currently about one‑third of Heron Power’s business.
• Other segments: Solar power and grid‑scale batteries, which also benefit from SST speed and flexibility.

Production plans

• Factory goal: Build a facility capable of producing 40 GW of Heron Link transformers annually.
• Scale: Represents roughly 10‑15 % of annual non‑China production (or 5‑10 % of total global demand), comparable to half the peak power demand of Texas.
• Timeline: Pilot production slated for early 2027, with full ramp‑up over the following two years.

Competitive landscape

Heron Power is not alone in developing solid‑state transformers, and many legacy grid transformers are approaching the end of their service life. The company’s new capital, combined with Baglino’s experience scaling production, could provide a competitive edge. “We will push as hard as we can,” he said.