A drive unit that includes a rotating electric machine having a stator with winding wound on the stator and with a shaft rotating within the stator, and a rotor rotatable relative to the stator. The drive unit also includes a controller holding member disposed on one end of the rotating electric machine, and a controller having a substrate fixed to the controller holding member, a heat generation element mounted on a heat generation element mounting surface. The drive unit further includes a power supply connector connecting the substrate and a power supply, and a ground line coupled to a ground terminal of the power supply providing a conductive connection to the controller holding member via the substrate and the power supply connector. With this structure, the drive unit's common mode noise may be reduced.