#United States #Energy Infrastructure #Morgan Hill #Heron Power

Heron Power's New Manufacturing Revolution

Heron Power, a leader in advanced power electronics in the U.S., is making headlines as it establishes its first large-scale factory in Morgan Hill, California. This historic decision marks a significant investment of over $100 million in an advanced manufacturing facility aimed at producing the innovative Heron Link system. This system, capable of delivering a 5-megawatt medium voltage power conversion solution, is critical for both large-scale energy and data center projects.

The Vision Behind Heron Factory One

The Morgan Hill facility, which spans 286,000 square feet and was previously a distribution warehouse located just 30 minutes south of San Jose, is designed to produce up to 10,000 Heron Links annually. This output equates to over 40 gigawatts of power each year, a volume that is approximately three-quarters of the new generating capacity added to the U.S. grid in 2025, marking the highest single-year expansion in over 20 years. The establishment of Heron Factory One is expected to generate more than 600 skilled jobs across various roles, including advanced manufacturing and engineering, further solidifying California’s reputation as a hub for innovation in the green technology sector.

Addressing Energy Infrastructure Concerns

As the energy landscape evolves rapidly with advancements in grid-edge technologies—ranging from batteries and solar panels to electric vehicles—there is a pressing need to upgrade the infrastructure that supports this growth. Much of the existing hardware for power transmission is outdated, relying heavily on mechanical designs that struggle to meet modern energy demands. Astonishingly, over 80% of key grid components like transformers and inverters are still imported, contributing to vulnerabilities in the national energy infrastructure.

Heron’s approach with the Heron Link is innovative: it consolidates multiple grid equipment elements into a single, compact, modular unit driven by intelligent semiconductors controlled by advanced software. This design not only increases efficiency but also leads to reduced physical footprints for energy systems. Importantly, it promotes smoother interactions with large AI data centers, which have become both pivotal and challenging for grid stability.

Responding to Modern Demands

Drew Baglino, Heron Power’s Chief Executive Officer and Founder, emphasizes the urgency of revitalizing America’s energy grid, stating, "America’s grid has to grow faster than it has in decades. We’re seeing new demand from AI and EVs, alongside fresh supply from solar and storage. The equipment running our grid has not undergone substantial changes in fifty years. Heron Factory One in Morgan Hill embodies our response to this challenge—manufacturing pivotal, leapfrog technology in the U.S. at scale."

The selection of Morgan Hill as the manufacturing site was a strategic choice. This location not only positions Heron close to its engineering headquarters but also taps into the broader Bay Area’s deep resources in engineering and manufacturing talent. This proximity is crucial for efficiently achieving quality and cost targets as the factory ramp-up progresses.

Collaborative Support for Expansion

The journey to establish Heron Factory One has been highly collaborative. The City of Morgan Hill, Pacific Gas and Electric (PGE), and state partners have played significant roles in this initiative, culminating in a $26.4 million award from California Competes (CalCOMPETES). This competitive tax credit, administered by California GO-Biz, underscores the importance of fostering local manufacturing capabilities to enhance the energy infrastructure. Dee Dee Myers, a senior advisor to Governor Newsom, highlighted the importance of this investment, stating, "Heron Power is building technology that will enhance America’s grid reliability and efficiency. We are proud to support their growth in California, which adds over 600 quality jobs and strengthens our future energy landscape."

Conclusion: A Future Built on Innovation

Heron Power’s commitment to manufacturing next-generation energy solutions in the United States signals a transformative step toward creating a more robust and resilient energy infrastructure. As we navigate through this crucial transition period in energy production and consumption, Heron Factory One stands as a beacon of hope, innovation, and economic opportunity. By harnessing technology designed for the future, Heron Power is not just contributing to cleaner and more efficient energy production but is also nurturing a skilled workforce that will be vital in shaping the nation’s energy landscape for years to come.