The data center buildout has been speeding up the deployment of solar, wind and battery storage as hyperscalers scramble for power. It may also accelerate clean tech solutions such as low-carbon cement, eco-friendly industrial cooling and advanced electrical systems.
That’s the goal of the Data Center Innovation Initiative launched today by Elemental Impact and some of the largest data center operators. Microsoft, Google, Meta and Amazon will pilot a range of clean tech solutions with the aim of sharing results and paving the way for deployment at other data centers — and ultimately schools, hospitals, manufacturing plants and other customers.
Elemental will invest $500,000 to $5 million per project in up to 10 technology startups through 2027. Breakthrough Energy Discovery, Builders Vision Philanthropy, Salesforce and the Stolte Family Foundation are funding the initiative via philanthropic commitments that could reach $50 million.
“The massive industrial buildout that’s coming through data centers presents a unique window of opportunity to accelerate the commercialization of technologies that reduce emissions, have better water use, reduce local environmental impact and make all of our lives better,” Elemental Impact’s Dawn Lippert told ImpactAlpha (for background, see “Pulling climate tech to commercial scale with the energy demand from data centers (podcast)“).
Honolulu-based Elemental Impact is a nonprofit investor that helps philanthropic investors deploy catalytic capital to climate solutions and set them on the road to commercialization. Lippert called out the “the role of philanthropy to provide catalytic capital that invests in pilot projects and de-risk these projects.”
Pull through
The buildout is a “once-in-a-generation opportunity” to shape how energy and industrial systems are built, says Elemental. The firm has already seen the impact of data centers across its portfolio. An early deal with Google, for example, helped Fervo Energy commercialize its geothermal energy solution and lay the groundwork to scale. The Houston-based company raised $1.9 billion in an IPO earlier this month.
Energy storage startups Noon Energy and Energy Dome are working with Meta and Google, respectively, on rolling out their energy storage solutions. Transaera, a Somerville, Mass. startup developing ultra-efficient air cooling systems, has been testing its technology at Amazon’s Houston facilities.
Microsoft, Google and other Big Tech firms that once touted climate pledges are under pressure to tamp down their soaring emissions and water usage from data centers. Elemental has worked with its Big Tech partners for more than a year to identify the solutions they need and prioritize technology areas, which are spelled out in an RFP. The partners will provide input during the diligence process, run pilots, and share project outcomes to accelerate adoption.
“Data centers are uniquely positioned to serve as catalysts for clean energy and sustainable building materials,” Nat Sahlstrom, vice president of energy and sustainability at Meta, said in a statement announcing the Data Center Innovation Initiative. “By sharing what we learn together, we can support entrepreneurs to scale faster and move these innovations to real-world impact.”
Elemental will work with companies selected to pilot their technology on early collaboration with local stakeholders, workforce development and a clear articulation of project benefits.
“Technology brings half a solution, and communities bring the other half,” said Lippert. Creating mutually beneficial arrangements with communities is “part of our DNA and part of our playbook.”
