Modular microgrid company Critical Loop announces $26 million Series A round

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Critical Loop, a power solutions company that provides modular, scalable microgirds to allow its industrial clients to bring power online faster than traditional grid interconnection, has announced the completion of a successful Series A funding round, raising $26 million from a group of investors led by led by Conifer Infrastructure Partners and Hanover.

The lead investors were joined in the funding round by Better Ventures, Climate Capital, Adapt Nation Capital, and Cyrus Ventures.

The company, which includes a team of engineers from companies such as SpaceX, Tesla, and Rivian, intends to use the capital to accelerate the deployment of modular microgrid technology that allows utilities to connect industrial customers to the grid while in the process of conducting permanent upgrades.

News of Critical Loop’s successful funding round also included an announcement of an agreement to source domestically-manufactured energy storage products from LG Energy Solution Vertech.

“In just a couple of years, we’ve built a software and hardware stack that has the potential to accelerate time to power from years to days, and with this team, we believe we can keep doing things that were previously considered impossible,” said Bala Ramamurthy, co-founder and CEO of Critical Loop, in a statement.

Bridging the interconnection gap

As businesses and utilities across the United States wait for infrastructure upgrades, the company says its approach can reduce the time to power from years to days or weeks. Critical Loop’s platform combines battery storage, power generation, and its UL 3141-certified proprietary software-defined controller — known as Cygnus — into a single deployable unit.

The company’s CLB-5100 is a scalable 1 MW battery system that integrates the above-listed components and is designed to connect to existing grid infrastructure or on-site generation. Because the units are modular, they can be moved to different locations as grid capacity constraints shift, allowing utilities to serve customers while permanent substation or line upgrades are completed in the background.

Critical Loop is positioning its technology as a solution for the growing load demand driven by AI data centers and industrial electrification. According to the company, the Cygnus controller allows the system to operate autonomously, managing diverse power sources to maintain site reliability.

Regulatory and market expansion

The funding follows recent regulatory developments in California. In February 2026, the California Public Utilities Commission issued a rulemaking directing Southern California Edison and Pacific Gas & Electric to file new “flexible service connection” tariff options. These options are designed to help customers facing grid constraints connect more quickly using distributed resources — a market segment Critical Loop is actively targeting.

While currently focused on California, Critical Loop says it plans to expand into other territories where grid queues are limiting industrial growth.

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