AI boom reshapes climate week

This year's New York Climate Week saw the climate tech community eagerly riding the AI wave, with much of the focus on natural gas power plants being built to power AI data centers.

Energy startups see opportunity

Many climate tech startups are energy-focused or energy-adjacent, so the data center buildout has been embraced as an opportunity to get companies through the valley of death.

Funding surges for climate tech

Total venture deal value for climate tech has risen for four consecutive quarters, cresting the fourteen billion dollar mark in the first quarter of this year, according to PitchBook data.

Founders choose speed over caution

During a panel at New York Climate Week, two founders said without hesitation that faster AI buildout was better than a more climate-responsible pace. Both ran energy startups.

“faster was better”

Other sectors risk being overlooked

Several founders told the reporter that the data center boom was distracting from other promising segments of climate tech, including those meeting targets without relying on AI mania.

Corporate interest persists quietly

One founder said large companies remain interested in climate but don't want to publicize it, mostly for fear of drawing the Trump administration's ire.

“Corporates are still interested in climate”

Frustration over delayed funding

Several people acknowledged that money for scaling was hard to find three years ago, even with promising results. Now customers are eager for demos, prompting knowing eye rolls at the timing.

“Where was this money three years ago?”

Data center boom may fund long-term missions

The undercurrent at New York Climate Week was that the data center party won't last forever, but it might last long enough to help startups build durable businesses and refocus on carbon-cutting.