AI Boom Dominates Climate Week, Dividing Climate Tech

Artificial intelligence and data center construction dominated this year’s New York Climate Week, dividing climate tech founders and investors over whether the boom will help or distract from the sector’s goals.

Many climate tech startups have embraced rising demand for energy to power data centers as a chance to secure funding and grow. Some remain concerned about the number of natural gas power plants being built for that demand. The focus on data centers may also draw attention and investment away from other promising areas of climate tech.

Companies that adapted their pitches to the AI boom have found fresh investor interest as climate tech financing recovered. PitchBook’s most recent available data puts venture deal value above $14 billion in the first quarter of this year, after four consecutive quarterly increases. Much of that activity has gone to areas tied to data center construction, including buildings, grid infrastructure and energy that can be dispatched when needed.

At a Climate Week panel, two energy startup founders said they preferred the AI buildout to proceed faster, even when asked to weigh that against a more climate-responsible pace. Other founders told TechCrunch that data center enthusiasm risks overshadowing climate businesses meeting their targets without relying on AI. One founder said corporations remain interested in climate but are less willing to speak publicly about it, partly out of concern about provoking the Trump administration.

The article describes the boom as unlikely to last forever, but potentially long enough for startups to build durable businesses and later refocus on cutting carbon.