US-based startup Heron Power has selected Morgan Hill, California, to build its first power electronics manufacturing facility in the US.
Founded by former Tesla executive Drew Baglino, the company’s first manufacturing facility is designed to build up to 10,000 Heron Links per year, representing an annual nameplate capacity of 40GW.
Located at a former 286,000 square foot distribution warehouse, the new facility will produce Heron Link, a 5MW medium voltage power conversion system (PCS) for large-scale energy and data centre projects. Heron Link integrates bidirectional inverter technology with solid-state transformers (SST), currently marketed by Heron Power for solar PV and energy storage projects.
The startup will invest more than US$100 million in the facility, with site preparation beginning immediately and commercial production to begin in late 2027.
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According to the company, the new manufacturing facility – called Heron Factory One – aims to answer a gap in US-sourced critical grid components such as transformers and inverters. The move comes not long after the Public Safety and Homeland Security Bureau (PSHSB) of the US Federal Communications Commission (FCC) classified foreign-produced power inverters, as well as advanced robotic devices, as national security threats.
Heron Power evaluated several manufacturing sites across multiple states before selecting Morgan Hill as it will place it near the company’s engineering headquarters and the broader Bay Area’s engineering and manufacturing deep talent pool. According to the company this will accelerate the manufacturing plant’s ramp up to full output as well as quality and cost targets.
“America’s grid has to grow faster than it has in decades. We’re seeing new demand from AI and EVs, and at the same time new supply from solar and storage,” said Baglino, CEO and Founder of Heron Power.
“The equipment running the grid hasn’t changed in fifty years. Heron Factory One in Morgan Hill is how we fix that. We’re manufacturing the leapfrog technology our grid needs, at scale, in America first.”
EPC Power trebles power conversion manufacturing capacity at South Carolina facility
In related power conversion manufacturing news, EPC Power has opened its first manufacturing facility in the US, adding 27GW of annual nameplate capacity.
Located in Fountain Inn, South Carolina, it is the second manufacturing facility for the company in the state and nearly triples its production capacity.
According to EPC Power, the 167,000-square-foot facility will enable it to meet the rising demand for AI data centre infrastructure and grid and energy stability. The power management solutions company added that the facility can be quickly scaled up to 40GW
This is also the second facility in South Carolina, and it will produce EPC Power’s M and MRACK series power inverters, which are specifically designed for grid and energy storage applications as well as AI data centre environments using proprietary Agile Grid Forming technology.
“Our expansion in South Carolina is a direct response to the AI infrastructure investment and power demands we’re seeing worldwide,” said Jim Fusaro, CEO at EPC Power. “By tripling our capacity, we’re giving data center and utility operators access to more critical components domestically, which de-risks their expansion plans and strengthens supply chain resilience.”
EPC Power was acquired in 2022 by investors Goldman Sachs and Cleanhill Partners.
Battery Asset Management Summit USA 2026 will be held 15-16 September in Garden Grove, California, hosted by Energy-Storage.news publisher Solar Media (part of the Informa Group). The agenda emphasises addressing the roles of AI, cybersecurity, and second-life applications, broken down into two tracks: Technical Asset Management and Commercial Asset Management. This year, the conference is also co-located with Solar & Storage Finance Summit USA. Visit the official site for more details.
