Heron Power announced it has closed $140 million in Series B financing to accelerate development of its solid-state transformer technology and expand U.S.-based manufacturing. The round was co-led by Andreessen Horowitz through its American Dynamism Fund and Breakthrough Energy Ventures, with participation from existing investors Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund, and Gigascale Capital.
With the new capital, Heron Power plans to build a 40-gigawatt, highly automated U.S. manufacturing facility for Heron Link, the company’s modular solid-state transformer designed for critical energy and AI data center projects. The funding will also support broader efforts to modernize power generation and delivery infrastructure, aiming to make it more affordable, reliable, and responsive to surging electricity demand.
The company’s Heron Link platform is designed to streamline connections between low-voltage DC technologies, such as solar panels, battery storage systems, and AI compute infrastructure, and medium-voltage AC grids. By leveraging next-generation power semiconductors and a modular architecture, the system eliminates the need for bulky transformers and reduces reliance on legacy electrical equipment. Heron says this approach can shorten deployment timelines while improving efficiency, reliability, and cost structures for data centers, renewable energy installations, and storage projects.
The funding comes amid heightened global investment in renewable generation, energy storage, and grid modernization. In 2025, global investment in these areas reached a record $1.2 trillion as utilities and developers sought to address electrification-driven demand growth, rapid data center expansion, and aging grid infrastructure. More than half of existing U.S. grid equipment is over 30 years old, and demand for traditional transformers has more than doubled since 2019, resulting in longer lead times and higher costs.
Heron Power is positioning its solid-state transformer technology as a solution to these bottlenecks, targeting applications across generation, transmission, and end use. The company reports more than 40 gigawatts of early interest through product-led partnerships with utility-scale solar, energy storage, and data center developers seeking faster deployment, higher reliability, and domestically manufactured equipment.
The company is led by founder and CEO Drew Baglino and is headquartered in Scotts Valley, California. Heron says it is continuing to hire engineers and work with project developers and utilities to scale its platform.
KEY QUOTES:
“We need new, more capable solutions to keep pace with accelerating energy demand and the rapid growth of gigascale compute. Too much of today’s electrical infrastructure is passive, clunky equipment designed decades ago. 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.”
Drew Baglino, Founder and CEO, Heron Power
“Heron Power isn’t just making a product that’s essential to bring new electricity generation online and support today’s data center buildout. 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.”
Erin Price-Wright, General Partner, Andreessen Horowitz
“Electricity demand is accelerating at a pace our legacy grid simply wasn’t built to handle. Heron is reengineering one of the grid’s most critical bottlenecks with next-generation solid-state transformers, manufactured at scale in the U.S. With deep expertise in power electronics and commercialization, the team is uniquely positioned to redefine how power moves across the grid.”
Dave Danielson, Partner, Breakthrough Energy Ventures
“The digital loads of tomorrow require innovative ways to improve flexibility, increase reliability and decrease cost. As we build some of the largest data centers on the planet, co-locating with massive new power generation, partners like Heron will provide the innovative solutions we need to tie it all together.”
Sheldon Kimber, CEO, Intersect
