Heron Power plans $100 million factory for advanced electric grid equipment
Heron Power, a startup founded by a former Tesla executive, plans to invest $100 million in a new factory in California, south of San Jose. The facility will produce advanced transformers and power conversion systems for the U.S. electric grid, aiming to address critical component shortages. These systems are designed to support large-scale energy and data center projects.
Heron Power, a startup founded by former Tesla senior executive Drew Baglino, announced plans to build a $100 million factory in California to produce advanced transformers for the U.S. electric grid. The facility, located 30 minutes south of San Jose, will convert a 286,000 square foot distribution warehouse into a production site for Heron Link, a 5-megawatt medium-voltage power conversion system designed for large-scale energy and data-center projects.
The company secured $140 million in Series B funding earlier this year from investors including Andreessen Horowitz and Breakthrough Energy Ventures. Baglino believes that software-controlled, chip-based transformers can effectively compete with traditional models, addressing the current shortage of critical grid components. He aims to capitalize on the rapid transformation of the U.S. power grid, which is under strain from booming demand driven by data centers, electric vehicles, and heat pumps.
U.S. Energy Department officials have highlighted the grid's reliance on outdated 1960s and 1970s infrastructure, contributing to a significant supply challenge for new equipment. Heron Power plans to begin mass production of its equipment in late 2027, with Baglino reporting strong interest from electric utilities and data center developers.