Heron Power Raises $140 Million to Build a Next-Generation Power Grid in Series B

Heron Power, built for the grid ahead, led by Drew Baglino and the team, has announced the closing of $140 million in Series B financing co-led by Andreessen Horowitz’s (a16z) 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 financing, Heron Power will build a 40-gigawatt automated U.S. manufacturing facility for Heron Link, its solid-state transformer solution designed for energy infrastructure and AI data centers. The capital also advances the company’s goal of making power generation and delivery more affordable, reliable, and responsive.

Heron Power’s Heron Link connects low-voltage DC sources such as solar, batteries, and AI compute directly to medium-voltage AC grids without bulky legacy transformers. Using modern power semiconductors and a modular architecture, the system removes layers of traditional electrical equipment for data centers and energy projects, improving deployment speed, efficiency, reliability, and cost.

According to Drew Baglino, modern power electronics are intended to replace decades-old passive infrastructure so projects can launch faster, grids operate more reliably, and large-scale compute can grow affordably.

Global investment in renewable generation, storage, and grid modernization has surged while aging U.S. infrastructure and rising transformer demand strain deployment timelines and costs. Heron Power aims to address this by advancing solid-state transformers across generation, transmission, and end-use applications.

According to Erin Price-Wright of Andreessen Horowitz, the company is building technology to modernize the electric grid into a software-defined, AI-native system manufactured at scale in the U.S. Dave Danielson of Breakthrough Energy Ventures added that next-generation solid-state transformers could remove a critical grid bottleneck as electricity demand accelerates.

Heron Power is working with developers of utility-scale solar, storage, and data center projects seeking faster deployment, higher reliability, and domestic supply chains. Through early partnerships, the company has identified more than 40 gigawatts of initial demand, signaling strong market interest in a new approach to power infrastructure.

According to Sheldon Kimber of Intersect Power, next-generation solutions are required to connect large-scale data centers with new power generation while improving flexibility, reliability, and cost efficiency.