Power electronics manufacturer Heron Power has chosen Morgan Hill, California, as the location for its first large-scale factory, Heron Factory One, in the US.
The planned advanced manufacturing facility will involve an investment of over $100m and is expected to create more than 600 jobs in advanced manufacturing, engineering, and operational roles.
It will be developed by converting a 286,000ft² former distribution warehouse located approximately 30 minutes south of San Jose.
Heron Power intends for the site to produce up to 10,000 units per year of its Heron Link system. It is a 5MW medium voltage power conversion system targeted at large-scale energy and data centre projects.
Mass production at the Morgan Hill factory is scheduled to commence in late 2027, with site preparation beginning immediately.
Once operational, the factory will deliver over 40GW of equipment annually, which Heron Power states is comparable to roughly three-quarters of the total new generating capacity added to the US grid in 2025.
The new facility aims to improve domestic production capacity for critical energy infrastructure, at a time when about 80% of components such as transformers and inverters are currently imported.
The Heron Link product combines multiple grid equipment components into a single modular unit, with the aim of increasing efficiency and supporting system reliability for applications including AI data centres.
Heron Power CEO and founder Drew Baglino said: “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.
“The equipment running the grid hasn't changed in 50 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.”
The decision to locate in Morgan Hill follows a review of potential sites in multiple states. The location places Heron's factory in proximity to its engineering headquarters and the wider Bay Area’s talent pool.
The company received support for the facility through a $26.4m California Competes (CalCOMPETES) tax credit, administered by CA GO-Biz.
