Compute & Cloud
Heron Power raises $140M to scale solid-state transformer production
Heron Power raised $140 million and plans to build a factory capable of producing 40 gigawatts of solid-state transformers annually to meet data center demand.
On Wednesday, Heron Power announced it has raised $140 million in Series B funding to scale the production of solid-state transformers (a power conversion technology). The startup previously raised a $38 million Series A in May. The new funding round was led by:
- Andreessen Horowitz
- Breakthrough Energy Ventures
The round also included participation from:
- Capricorn Investment Group
- Energy Impact Partners
- Gigascale Capital
- Valor Atreides AI Fund
The company is led by CEO and founder Drew Baglino, a former Tesla executive.
The startup’s solid-state transformers, branded as Heron Link, are designed to replace iron-core transformers (a legacy power technology). While iron-core transformers are bulky and generate heat, solid-state transformers are smaller and can manage power intelligently using semiconductors instead of passive metal. The Heron Link devices can convert medium-voltage electricity to the 800-volt power needed by Nvidia reference rack designs. Each device is capable of handling 5 megawatts and contains tens of modules that perform the power conversion. If a module fails, it can be swapped out in about 10 minutes, which is faster than replacing a monolithic transformer.
Additionally, each Heron Link contains specialized lithium-ion batteries that can discharge for 30 seconds to smooth the transition to backup power sources, allowing data centers to eliminate uninterruptible power supplies (backup power systems). According to Baglino, these devices can simplify infrastructure, potentially removing 70% of the gear involved. Data centers currently account for about a third of Heron Power’s business.
Heron Power decided to raise the Series B after customers expressed interest in buying more than 40 gigawatts of solid-state transformers. The company plans to use the new funding to build a factory capable of producing 40 gigawatts of Heron Link transformers annually. This planned production capacity represents about 10% to 15% of annual production outside of China, or about 5% to 10% of total demand, which is equivalent to half the peak power demand of the state of Texas.
The company intends to begin pilot production in early 2027. Baglino noted that the company will move quickly to meet demand. “If our customers are leaning in, we need to lean in as well,” said Baglino, the CEO of Heron Power.
Why it matters
Heron Power is scaling production of solid-state transformers to meet significant demand from data centers, which are increasingly seeking efficient power delivery solutions.