Tech giants back new data center climate initiative

Microsoft, Google, Amazon and Meta are teaming up with a nonprofit investor to accelerate new technologies using data centers as test cases. Why it matters: The initiative, led by Elemental Impact, is among the clearest attempts yet to turn the massive buildout of AI infrastructure into a proving ground for new technologies rather than just a new source of emissions. Those technologies include advanced cooling, energy storage and low-carbon building materials. "We see data centers as really important customers for entrepreneurs to commercialize technologies that we've been working on for a long time," said Dawn Lippert, CEO and founder of Elemental Impact, the nonprofit investment firm spearheading the initiative. The big picture: The AI boom is driving a historic surge in electricity demand, increasing fossil fuel use and putting climate goals — including those of major tech companies — on the back burner. Opposition to data centers is also growing, fueled by concerns about rising power prices and AI displacing jobs. "This initiative is coming at the most perfect time because the priorities they have are literally the same priorities that you're hearing from communities," said Ryan Panchadsaram, a top adviser to venture capitalist John Doerr at Kleiner Perkins. Panchadsaram, whose firm is not involved in the initiative, said those include Elemental Impact's focus on community engagement and supporting technologies that enable more efficient use of energy and water. Follow the money: Elemental will invest between $500,000 and $5 million in up to 10 startups through 2027 to support pilot projects in data centers. The tech companies are not formally committing investment dollars, though that remains a possible outcome, Lippert and others involved said. They did provide funding to help launch the effort and will pay annual membership fees. Yes, but: That investment range is relatively small in the world of cleantech. Lippert said ...

Original source: Axios