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Paper: “Switching data centers to green power sources will not be enough to decarbonize AI”

Like much since Trump’s second mandate began, the narrative around CO₂ emissions has shifted decisively. In this era, appeals to do-gooderism face headwinds, while framing tech-enabled decarbonization as energy sovereignty now holds political currency.

This isn’t merely greenhushing; though: A tangible convergence is emerging between the future of computing and green innovation.

That’s also the focus of Dealroom’s recent Green Computing White Paper, published in partnership with Intel’s startup program Ignite and World Fund, a VC firm that also advocates for the importance of climate tech for European resilience.

With leading universities producing world-class research and talent pipelines, Europe is well positioned to combine DeepTech with climate impact. Not coincidentally, the white paper’s launch event took place in Munich’s Science Campus Garching, and more precisely, at the ESO Supernova Planetarium.

Kicking the day off with a short documentary narrated by Liam Neeson, the planetarium’s 360-degree immersive dome helped bring across the message that climate can’t be ignored. It was also a fitting venue to showcase European startups that are making green computing a reality, from semiconductor maker Space Forge to quantum company IQM.

Several of these startups are highlighted by name in the white paper, which explores both current and emerging trends addressing green computing needs — but also explains very effectively why AI will accelerate this demand. Let’s dive in.

Tech as challenge and solution

Tech giants are well aware that the rising demand for computing power is currently resulting in a rise in emissions; which is why they are partnering with nuclear startups that could provide carbon-free electricity to their data centers.

However, “switching data centers to green power sources alone will not be enough to decarbonize AI, the internet of things (IoT), cryptocurrency, and device use emissions,” the white paper’s authors warned.

With AI-related demand for computing power currently doubling every three to four months, and with Bitcoin mining alone consuming as much electricity as Poland, innovation is critical to ensure the technologies we need don’t deepen the climate crisis.

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Image credits: Dealroom

Beyond Si

Some solutions highlighted in the white paper are already advanced in their journey, while others have outsiders speculate on how many years it will take for them to materialize, if they even do. But all of these can still be framed into three trends: semiconductor material innovations, computing technologies innovation such as quantum, and software architecture improvements.

The first category has already generated a new wave of startups looking for more energy-efficient alternatives to silicon chips, which are showing their limits. Many of these focus on Gallium Nitride (GaN), which even gave their name to companies like Infineon-owned GaN Systems and Cambridge GaN Devices.

Overall, European GaN startups raised $70 billion over the last five years, according to Dealroom data. But others also secure funding to explore other materials, such as Silicon Carbide (SiC), graphene or diamond. The latter is the focus of French startup Diamfab, which raised an €8.7 million round of funding last year.

The properties of each material varies, but the idea is directionally the same: Improving efficiency and performance in industrial applications as varied as electrical vehicle batteries, IoT, aviation and nuclear reactors.

Capital calls

Whether we are talking quantum, photonics or spacetech, Europe has cards to play, and the launch event played that card, too. Science Campus Garching of the Technical University of Munich, we were reminded, is also home to Max Planck Institutes and several other research clusters.

“So the technology is being created in Europe,” World Fund general partner Daria Saharova said. However, she quickly added, “there is a lack of capital.”

VCs haven’t completely ignored the green computing opportunity. According to Dealroom, total funding in this sector has exceeded $790 million in Europe, with nearly half coming from VC, and most going into early stage startups.

Still, there is more to be done. “To accelerate the commercial adoption of these innovations,” the white paper authors argued, “companies require
 increased private and public investment, along with a supportive regulatory
 framework. This is essential for Europe to develop next-generation technologies
 that maximize the potential of advanced computing while minimizing its environmental impact.”

Featured image credits: ESO/P. Horálek

WorldFund covered travel costs for this event. It had no influence over the content of this article.

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