Heron Power Raises $140M to Build Solid-State Transformers for AI Data Centers

Heron Power, the power infrastructure startup founded by former Tesla Senior Vice President Drew Baglino, announced on February 18, 2026 that it has raised $140 million in Series B funding to scale production of solid-state transformers for AI data centers and grid infrastructure. The round was co-led by Andreessen Horowitz\'s American Dynamism Fund and Breakthrough Energy Ventures, with additional participation from Capricorn Investment Group, Energy Impact Partners, Gigascale Capital, and Valor Atreides AI Fund.

The raise follows a $38 million Series A that closed in May 2025, representing a rapid acceleration in both funding and scale ambition.

The Technology and Why It Matters for AI Infrastructure

Traditional iron-core transformers have existed in essentially the same form for over a century. They are large, relatively inefficient, and require multiple supporting pieces of equipment to function within a modern data center power delivery chain. Solid-state transformers replace the conventional magnetic core with power electronics, making them substantially smaller and capable of consolidating several functions into a single device — addressing two of the most pressing constraints in AI data center buildouts: physical footprint and power conversion efficiency.

Heron\'s product, called Heron Link, is designed specifically for critical energy and AI data center applications. While solid-state transformers have been under development for more than a decade, recent advances have matured the technology to the point of practical deployment at scale.

Manufacturing Plans and Market Demand

With the Series B capital, Heron Power will build a highly automated U.S. manufacturing facility with a target capacity of 40 gigawatts. Baglino stated that the company plans to begin pilot production in early 2027 before ramping to full-scale output over the following two years.

The urgency of the raise was driven by customer demand: Baglino indicated that customers expressed interest in purchasing more than 40 gigawatts of solid-state transformers, prompting the company to accelerate its fundraising timeline. As AI infrastructure buildout continues to strain power grid capacity, transformer availability — particularly at the scale and efficiency levels solid-state designs can provide — is becoming a critical bottleneck that startups like Heron Power are moving to fill.