The AI boom took over Climate Week and not everyone is happy about it — SkimNews
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- New York Climate Week was consumed by the AI data center boom, with most of the climate tech community embracing the buildout as a lifeline through the so-called valley of death despite concerns about the natural gas plants being built to power AI.
- Climate tech venture deal value has risen for four consecutive quarters, topping $14 billion in Q1 2025 according to PitchBook — the best fundraising environment in recent years — with most of the capital flowing to built environment, grid infrastructure, and dispatchable energy sectors tied to data center construction.
- Two energy startup founders on a panel said without hesitation they preferred the AI buildout to proceed at its current pace rather than at a more climate-responsible speed.
- Some founders warned the data center surge was distracting from other climate tech segments that were hitting their targets without riding AI mania.
- Corporate climate interest persists but large companies avoid publicly championing it for fear of drawing the Trump administration's ire, one founder said.
- Many startups had previously struggled for funding amid canceled federal grants and investor hesitancy before pivoting their pitches to match AI demand, with one asking pointedly: "Where was this money three years ago?"
- The prevailing undercurrent at the conference was that the data center funding cycle won't last forever, but may last long enough for startups to build durable businesses before refocusing on carbon-cutting.
Why it matters: The $14 billion flowing into climate tech in Q1 2025 is the strongest fundraising environment in years, but it's tethered to AI data center demand rather than pure decarbonization — meaning startups outside the data-center orbit compete for scraps while hoping the cycle lasts long enough to build durable businesses.
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