Supply Chain Management Intern

Three startups modernising electrical transformers have recently raised significant funding rounds. DG Matrix secured $60 million in Series A, Heron Power raised $140 million in Series B, and Amperesand obtained $80 million in November. These companies are developing solid-state transformers that replace traditional copper-and-iron devices with power electronics using silicon-based semiconductors. Unlike conventional transformers, the new technology offers real-time monitoring, bidirectional power flow, and software updates whilst handling multiple tasks in a single device. Data centres represent the initial target market, where solid-state transformers can replace several pieces of equipment whilst occupying 70% less space. The technology arrives as existing transformers age — over 50% of US distribution transformers exceed 35 years old — and demand surges from data centres and EV chargers.

Heron Power raises $140M to build 40GW US solid-state transformer manufacturing facility. Energy infrastructure company Heron Power Inc. announced today that it has raised $140 million in new funding to build a 40-gigawatt, highly automated U.S. manufacturing facility for Heron Link, the company's solid-state transformer solution for critical energy and artificial intelligence data center projects. Founded in 2024 by former Tesla Inc. executive Drew Baglino, Heron Power develops solid-state transformer systems designed to modernize electrical grid infrastructure. The company is focused on replacing conventional large-format transformers with power electronics-based systems that are intended to address grid interconnection constraints associated with renewable energy, battery storage and large data center deployments. Heron's approach centers on modular, software-integrated hardware that can be manufactured at large scale and deployed closer to load and generation assets. The company's core product Heron Link is a solid-state transformer that uses high-frequency power electronics to convert and regulate voltage between medium- and low-voltage systems. The design enables bidirectional power conversion and more granular voltage regulation while also supporting distributed energy resources and variable-load environments. Heron's platform, which manages Heron Link, manages interconnection between generation, storage and end-use infrastructure, including providing voltage transformation, frequency management and power conditioning while interfacing with grid control systems. The software layer allows operators to monitor performance and adjust operating parameters and, in doing so, integrate into utility workflows and large-scale energy projects. "Too much of today's electrical infrastructure is passive, clunky equipment designed decades ago," explains Chief Executive Officer Drew Baglino. "At Heron we are manifesting an alternative future, where modern power electronics enable projects to come online faster, the grid to operate more reliably, and scale affordably." The company's deployment targets include utility-scale solar installations, battery energy storage systems and hyperscale data centers requiring high-capacity grid connections, environments that often face long interconnection timelines due to transformer shortages and infrastructure bottlenecks. By using power electronics-based systems with a modular footprint, the technology is designed to fit into existing substations or distributed energy sites, supporting grid expansion and electrification projects. The Series B funding round was co-led by Andreessen Horowitz's American Dynamism Fund and Breakthrough Energy Ventures, with Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund and Gigascale Capital also participating. "Heron Power isn't just making a product that's essential to bring new electricity generation online and support today's data center buildout," said Erin Price-Wright, a general partner at Andreessen Horowitz. "They are building the technology that will catapult our aging electric grid into the software-defined, AI-native twenty-first century. And they are manufacturing it at scale here in America." The new funding takes the total raised by Heron to approximately $178 million. Image: Heron Power. A message from John Furrier, co-founder of SiliconANGLE: Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE's Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities. * 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more * 11.4k+ theCUBE alumni - Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network. About SiliconANGLE Media SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios - with flagship locations in Silicon Valley and the New York Stock Exchange - SiliconANGLE Media operates at the intersection of media, technology and AI. Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.