The AI boom took over Climate Week and not everyone is happy about it
Just like the rest of the U.S, data centers and AI are dividing climate tech founders and investors.
The AI boom dominated Climate Week in New York, generating mixed reactions. The climate tech community, like the U.S. economy, is riding the AI wave. Some express concerns over the energy-intensive nature of AI data centers, particularly the surge in natural gas power plants. However, many climate tech startups, which are often energy-focused or energy-adjacent, view this buildout as a way to navigate the "valley of death" and secure funding.
This AI-focused trend has led to a surge in venture deal value, with total funding reaching $14 billion in the first quarter of the year, according to PitchBook data. The pivot towards AI has helped numerous climate tech startups secure fresh funding. Despite this positive trend, some founders and investors feel that the data center boom is diverting attention from other promising sectors of climate tech.
Large corporations are still showing interest, but their focus is cautious, possibly to avoid drawing the ire of the Trump administration. Many startups are also experiencing difficulty securing funding even as they have promising results, indicating that the current wave of financing may be temporary. However, the prevailing sentiment at New York Climate Week is that the data center boom could provide enough time for startups to build sustainable businesses before the focus shifts back to carbon-cutting missions.
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