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Heron Power has raised $140 million in Series B funding to build a 40-gigawatt U.S. manufacturing facility for its solid-state transformer systems, the company announced Tuesday.

Founded in 2024 by former Tesla executive Drew Baglino, Heron Power develops power electronics-based transformers designed to replace conventional large-format grid transformers. The company says its systems are intended to address interconnection bottlenecks tied to renewable energy projects, battery storage installations and large-scale data centers.

The planned facility will manufacture Heron Link, the company’s modular solid-state transformer platform. The system uses high-frequency power electronics to convert and regulate voltage between medium- and low-voltage systems, enabling bidirectional power flow and granular voltage management. The technology is designed to integrate distributed energy resources and support variable-load environments such as hyperscale AI data centers.

According to Heron Power, its software-integrated hardware platform allows operators to monitor performance and manage grid interconnections across generation, storage and end-use infrastructure.

The Series B round was co-led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures. Additional investors included Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund, and Gigascale Capital.

The latest raise brings the company’s total funding to approximately $178 million. The new facility is intended to support domestic manufacturing and expand grid infrastructure capacity amid rising electricity demand from artificial intelligence workloads and electrification projects.