Heron Power, founded by former Tesla executive Drew Baglino, announced on Wednesday that it has raised $140 million to build gigawatts worth of solid-state transformers for data centers and the grid.
It’s a fast turnaround for the startup, which raised a $38 million Series A in May. Baglino said Heron Power didn’t need the money, but after customers expressed interest in buying more than 40 gigawatts of solid-state transformers, it decided to raise again.
“If our customers are leaning in, we need to lean in as well,” Baglino, who is CEO of Heron Power, told TechCrunch. “We gotta go faster.”
The speed at which Heron Power is raising shows just how data centers are driving demand for products that can rapidly deliver electricity to their servers. Baglino, who spent nearly two decades at Tesla and led the powertrain and energy groups, is no stranger to moving quickly.
The Series B round was led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures with participation from Capricorn Investment Group, Energy Impact Partners, Gigascale Capital, and Valor Atreides AI Fund.
Solid-state transformers have been under development more than a decade, but only recently have matured to the point where they are ready to deploy in data centers and other large, energy-intensive facilities.
The new technology seeks to replace old iron-core transformers, which have existed in essentially the same form for more than a century. Iron-core transformers are inexpensive and efficient, but they are bulky and generate lots of heat. Solid-state transformers are smaller and can also more efficient by replacing several pieces of equipment, solving two of data center developers’ biggest challenges.
Techcrunch event TechCrunch Founder Summit 2026: Tickets Live On June 23 in Boston, more than 1,100 founders come together at TechCrunch Founder Summit 2026 for a full day focused on growth, execution, and real-world scaling. Learn from founders and investors who have shaped the industry. Connect with peers navigating similar growth stages. Walk away with tactics you can apply immediately
Save up to $300 on your pass or save up to 30% with group tickets for teams of four or more. TechCrunch Founder Summit: Tickets Live On June 23 in Boston, more than 1,100 founders come together at TechCrunch Founder Summit 2026 for a full day focused on growth, execution, and real-world scaling. Learn from founders and investors who have shaped the industry. Connect with peers navigating similar growth stages. Walk away with tactics you can apply immediately
... continue reading