Heron Power: Reinventing the Grid for the AI Era — Inside Its $140 M Funding Breakthrough and What’s Next

In the world of energy and infrastructure, few technologies have undergone as little fundamental change in more than a century as the humble electrical transformer. Built on iron cores and copper windings, these ubiquitous devices quietly step voltage up and down across the grid — yet they were never designed for the demands of solar farms, battery storage, or hyperscale data centers. Heron Power is changing that narrative. With a recent $140 million Series B fundraising and a vision to rewrite how electricity is managed, this startup is positioning itself at the forefront of grid modernization.

From Legacy Transformers to Solid-State Revolution

The global electricity grid is under immense pressure. Surging demand — driven by electrification, renewable energy growth, and massive data center power consumption — has exposed critical bottlenecks in legacy infrastructure. Traditional transformers are bulky, slow to install, and expensive, with lead times stretching into years for large equipment. Amid this backdrop, Heron Power has emerged with a bold proposition: replace outdated transformer technology with advanced solid-state transformer systems, enabling faster deployment, greater efficiency, and software-centric grid control.

At the heart of this transformation is Heron Link, a modular power electronics platform that bridges medium-voltage electricity and next-generation energy systems, such as solar arrays, energy storage, and AI data centers. These solid-state transformers are smaller, faster, and more flexible than their legacy counterparts, enabling bidirectional power flow and smart voltage regulation — critical for modern grids and variable loads.

A Tremendous Funding Milestone: $140 M Series B Round

On February 18, 2026, Heron Power announced a $140 million Series B funding round — a watershed moment not only for the startup but for grid tech as a whole. The round was co-led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures, with participation from existing investors including Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund, and Gigascale Capital.

This funding follows a successful $38 million Series A in mid-2025, led by Capricorn Investment Group’s Technology Impact Fund and supported by Breakthrough Energy Ventures, Tesla co-founder JB Straubel, former Tesla CFO Zach Kirkhorn, and others. Combined, the company has now raised approximately $178 million to fuel its ambitious growth strategy.

Why Investors Are Betting Big

Several converging forces make Heron Power’s technology exceptionally attractive to investors:

1. Demand Surge for Modern Power Infrastructure

The rapid expansion of AI data centers globally has can’t be overstated: these facilities require tremendous power, often outstripping local grid capacity and exacerbating interconnection delays. Solid-state transformers like Heron Link promise to reduce deployment times and simplify power integration, making them highly appealing to infrastructure developers.

2. Grid Modernization Meets Software Intelligence

Heron Power’s platform isn’t just hardware; it integrates intelligent controls that allow operators to monitor and adjust power flow dynamically — an essential capability as grids shift toward variable renewable generation and distributed energy resources. This software-enabled edge represents a convergence of grid tech and digital infrastructure.

3. Scaling Manufacturing at Gigawatt Scale

With the new capital, Heron Power plans to build a 40-gigawatt automated manufacturing facility in the US, capable of producing a significant portion of global demand outside China. Production is slated to begin pilot operations in early 2027 and ramp through the following two years, giving the company a first-mover advantage in an emerging category.

Real-World Traction: Customers and Orders

Heron Power’s market potential is underscored by strong early customer interest. The company has reportedly lined up more than 40 GW of early orders, including engagements with developers of solar farms, battery storage, and data center campuses. Notable early collaborators include Intersect Power, a major clean energy developer, and Crusoe, a large data center operator — demonstrating that Heron’s solutions are resonating with industry leaders.

Visionary Leadership With Deep Expertise

Heron Power was founded by Drew Baglino, a former senior vice president at Tesla who led the company’s powertrain and energy groups for nearly two decades before launching Heron in 2024. Baglino’s leadership brings deep technical expertise and strategic insight into power electronics and grid integration — a key reason why top-tier investors have backed the company’s mission.

The leadership team also includes seasoned engineers and industry veterans with backgrounds spanning power systems, renewable energy integration, and industrial electronics — a blend that helps bridge the gap between traditional grid companies and agile technology innovators.

What This Means for the Future of Energy

Heron Power’s ascent symbolizes more than just a startup success story; it reflects a broader shift in how the world will power future energy infrastructure. Traditional grids were designed for centralized, predictable generation. The new energy landscape is decentralized, unpredictable, and software-driven. Solid-state transformers like Heron Link are uniquely positioned to solve the structural challenges posed by this transition — from variable renewables to electrification and AI.

By enabling more efficient power conversion, faster installation timelines, and intelligent grid interaction, Heron Power’s technology could reduce costs, improve reliability, and accelerate the deployment of renewable generation and data-intensive systems. This evolution is not incremental; it’s foundational. And investors recognize this — as evidenced by the scale, quality, and speed of funding Heron has attracted.

Conclusion: Grids Reimagined for a New Era

Heron Power is more than a hardware startup — it’s a catalyst for grid transformation at a time when global power systems are under unprecedented strain and demand. By marrying modern power electronics with scalable manufacturing and software intelligence, the company is addressing a critical infrastructure gap that has long been overlooked.

With $140 million in fresh funding, a projected 40 GW production facility, and a rapidly growing pipeline of commercial interest, Heron Power is poised to redefine how electricity is delivered in the 21st century — not just for AI data centers, but for the broader electrified economy.