Heron Power to Build $100 Million Electronics Factory in California

The new facility will serve as the production hub for the Heron Link, a 5-megawatt medium voltage power conversion system designed for large-scale energy projects and data centers. By consolidating multiple grid components into a single software-controlled modular unit, the company intends to replace aging, mechanical technology that currently struggles to keep pace with the demands of AI and electric vehicle adoption. The site, located 30 minutes south of San Jose, will create more than 600 jobs in engineering and manufacturing.

CEO Drew Baglino noted that the current grid equipment has seen little innovation in 50 years, creating a bottleneck for renewable energy and storage integration. Beyond the private capital investment, the project received a $26.4 million California Competes tax credit. This state support, coordinated with local officials and PG&E, helped secure the location near the Bay Area’s engineering talent pool. With site preparation beginning immediately, the company anticipates an annual output of 40 gigawatts, a volume equivalent to roughly three-quarters of the entire U.S. grid's new generating capacity added in 2025.