GoKawiilVenture capitalists have placed increasingly bigger bets on AI startups, investing over half a trillion dollars into the sector over the last five years.
But these days, the smartest AI investment might be in energy, according to a report by Sightline Climate. Researchers found that up to 50% of data center projects that have been announced might be delayed. One of the biggest culprits is access to power.
Of the 190 gigawatts worth of data centers the company is tracking, only 5 gigawatts are under construction. About 6 gigawatts of data center projects in Sightline’s database came online last year. A far larger percentage — about 36% — saw their timelines slip in 2025. The delays may eventually trickle down and affect large enterprises and other companies that use AI for their businesses.
That supply-demand squeeze is an opportunity for investors. Here’s why.
Big tech companies like Google and Meta have devoted large parts of their balance sheets to develop solar, wind, and nuclear projects. These companies are also supporting emerging technologies like Form Energy’s 100-hour battery through direct investments and working with utilities to accelerate their adoption.
Dozens of startups are pursuing technologies that tackle the power problem. For instance, Amperesand, DG Matrix, and Heron Power are developing new power conversion technologies, while companies like Camus, GridBeyond, and Texture are building software that can manage the flow of electrons.
Power remains one of the most significant constraints for data centers, a shortfall that isn’t likely to change anytime soon. AI is expected to drive data center power consumption up 175% by 2030, according to Goldman Sachs.
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