Key facts
- Heron Power will build a $100 million factory in California.
- The factory will produce advanced transformers for the U.S. electric grid.
- The facility will convert a former 286,000 square foot distribution warehouse.
- CEO Drew Baglino, who spent 18 years at Tesla, leads Heron Power.
- Mass production is planned to begin in late 2027.
Heron Power, a startup founded by Drew Baglino, a former 18-year Tesla executive, announced plans to construct a $100 million factory in California. The facility, located 30 minutes south of San Jose, will convert a 286,000 square foot distribution warehouse to produce Heron Link, a 5-megawatt medium-voltage power conversion system designed for large-scale energy and data center projects.
Baglino believes that software-controlled, chip-based transformers can effectively compete with traditional steel and oil-filled transformers. He aims to capitalize on the significant demand for grid modernization driven by the booming energy needs of data centers, electric vehicles, and heat pumps, which are straining the existing U.S. power infrastructure. Much of the U.S. grid still relies on technology from the 1960s and 1970s, leading to a shortage of critical components, with delivery times for standard transformers stretching up to four years, partly due to reliance on imports.
Heron Power previously raised $140 million in a Series B funding round, with participation from investors such as Andreessen Horowitz and Breakthrough Energy Ventures. The company anticipates beginning mass production of its equipment in late 2027. While Baglino did not disclose potential customers, he indicated strong interest from electric utilities and data center developers, noting that any rapidly changing grid would benefit from this type of advanced electronics.