Power firm Heron Power has signed a Letter of Intent (LOI) with Crusoe to supply power converter technology for the Stargate data center campus in Texas.

According to reports from Bloomberg, the company inked several LOI’s with data center firms, including Crusoe Energy Systems.

Heron closed its Series A funding round last week, raising a total of $38 million. The funding is aimed at supporting the commercialization of its Heron Link product, which seeks to replace legacy transformers and power converters by directly connecting rapidly growing energy technologies to medium voltage transmission.

The product is a modular megawatt power converter built on the latest advances in wide-bandgap semiconductors. In addition, the company claims that the product is designed for high power density and ease of maintenance, offering greater reliability and lower costs for renewable energy storage and data center developers.

Initial field demonstrations for Heron Link are expected in mid-2026, with partner installations slated for early 2027.

Reacting to the news on LinkedIn, Crusoe co-founder and CEO Chase Lochmiller, said: “Crusoe is excited to partner with Heron Power. Using power electronics to modernize the medium voltage electrical stack is a critical solution to help Crusoe drive down costs and increase power efficiency in our AI factories.”

Crusoe said that the collaboration would underscore its commitment to building a “sustainable and scalable foundation for AI.”

The Stargate data center campus is located in Abilene, Texas. It will be the flagship site for OpenAI's Stargate effort, a $500 billion project to build several massive data centers across the US for the AI developer.

Construction on the project's 200MW first phase commenced in June 2024, with energization expected sometime in 2025. Construction on the second phase, which will consist of six data center buildings and a further 1GW of capacity, began in March 2025 and is expected to be completed in mid-2026.