Venture capitalists are betting billions on AI, but energy tech may be the smarter investment due to power shortages affecting data centers nationwide.
San Francisco: Venture capitalists have invested over $500 billion in AI startups during the past five years. But smart money might be moving toward energy technology instead. Researchers found that up to 50% of announced data center projects could be delayed.
Power access is the biggest problem. Only 5 gigawatts of 190 total gigawatts under review are being built right now. About 6 gigawatts started last year, but 36% of projects saw delays in 2025. These delays could affect companies using AI for their work.
Big tech companies like Google and Meta are investing in solar, wind, and nuclear projects. They are also backing new technologies such as Form Energy’s 100-hour battery. Many startups are developing solutions for these power problems.
AI will increase data center power use by 175% by 2030 according to Goldman Sachs. Because of this growth and grid problems, tech companies are building data centers with their own power sources or hybrid systems.