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Several cranes stand on the large construction site for a Schwarz Group data center Patrick Pleul/picture alliance — Getty Images

AI data centers are gobbling up the world's electricity — here are 5 startups trying to stop them from breaking the grid

An exceptionally hot summer may be on the way, and investors are betting billions that startups specializing in climate-friendly technologies can help the world adapt. Some of the startups attracting investor attention are tackling problems that sounded futuristic just a few years ago, including offshore AI data centers and systems that create water from heat generated by servers.

Most of the companies are still early-stage startups (1), but some investors are betting their technologies could help address mounting energy, water and climate pressures.

Aikido Technologies: Floating AI data centers at sea

Perhaps the most eye-catching company on the list, Aikido Technologies (2) is developing floating offshore data centers designed to support the exploding demand for artificial intelligence.

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The concept aims to use naturally cold ocean water to cool servers more efficiently, reducing the enormous energy costs associated with traditional land-based cooling systems. Data centers already account for an estimated 1% to 1.5% of global electricity consumption, according to the International Energy Agency (3), and that figure is expected to rise sharply as AI expands.

The company also pitches the idea as a way to reduce environmental strain on local communities struggling with rising electricity demand and water shortages tied to large-scale AI infrastructure.

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WAVR Technologies: Turning server heat into water

WAVR Technologies (4) is approaching the AI boom from another angle: water scarcity.

WAVR Technologies is developing systems designed to capture waste heat from AI data centers and convert it into atmospheric water. Instead of venting excess heat into the environment, the startup aims to convert it into a potentially valuable resource for drought-prone regions.

That could become increasingly important if El Niño-driven heat waves intensify water stress across parts of the U.S. and around the world this summer.

etalytics: Using AI to cool AI

German startup etalytics (5) is focused on making data centers themselves more energy efficient.

The company says its AI-powered software will help operators optimize cooling systems in real time, reducing wasted electricity and minimizing the need for manual adjustments. Cooling can account for as much as 40% of a data center’s total energy use, according to Schneider Electric (6), making efficiency improvements especially valuable as AI workloads grow.

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For investors, startups like etalytics offer something especially attractive: climate solutions tied directly to cost savings.

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Helix Earth: Tackling extreme heat indoors

As temperatures climb, keeping buildings cool is becoming both more expensive and more essential. Helix Earth (7) developed technology that removes humidity from air before it enters air-conditioning systems, helping reduce energy consumption while improving indoor air quality.

The startup is targeting commercial buildings and other facilities facing rising cooling costs during increasingly intense heat waves.

Sensegrass: AI tools for climate-stressed farms

Climate adaptation isn’t just about cities and data centers. Agriculture is also under pressure from hotter temperatures, drought and unpredictable rainfall. Sensegrass (8) uses soil sensors and AI-powered analytics to help farmers monitor crop conditions, improve yields and reduce water waste. The technology gives growers more detailed information about soil health and climate conditions in real time.

Climate-tech startups are gaining steam again

Back in April, the World Meteorological Organization warned (9) a new El Niño pattern is likely to develop later this year, increasing the odds of above-normal temperatures across much of the globe this summer. The agency forecasts “nearly global dominance of above-normal land surface temperatures” through July.

At the same time, climate tech funding is surging again after a multi-year slowdown. According to investment data from Sightline Climate (10) cited in a Trellis analysis, venture and growth capital investment in climate tech rose 8% in 2025 to reach $40.5 billion. Part of that momentum stems from growing urgency around extreme heat, soaring energy demand from AI and new policy clarity following President Donald Trump’s One Big Beautiful Bill Act.

As weather patterns become more volatile, tools like these are becoming increasingly important for protecting food production, and for investors looking to back businesses tied to long-term climate resilience. The boom in climate tech funding also reflects a growing realization on Wall Street and in Washington alike: Climate risk is increasingly becoming financial risk.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Metodo Viral (1); Aikido Technologies (2); International Energy Agency (3); WAVR Technologies (4); etalytics (5); Schneider Electric (6); Helix Earth (7); Sensegrass (8); World Meteorological Organization (9); Sightline Climate (10)

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Clay Halton Associate Editor

Clay Halton is an associate editor at Money.ca, covering a wide range of consumer-focused financial stories. He has over eight years of experience in digital publishing and has written and edited for outlets including PCMag and Investopedia.

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