Artificial intelligence is radically transforming industries – but at the same time, it is becoming one of the fastest-growing energy “consumers.” As the demand for intelligent systems increases, the electricity required for their training, operation, and cooling is also rising dramatically. This energy pressure is confronting the world of technology with an uncompromising reality: today’s energy infrastructure may not be able to meet the needs of tomorrow’s artificial intelligence.
It is precisely because of this problem that the Energy Innovation for AI Startup Challenge was organized – an initiative announced among startups worldwide to find innovative and sustainable solutions for the ever-growing energy needs of artificial intelligence.
AI is putting excessive pressure on energy infrastructure
The figures clearly confirm this. According to the International Energy Agency (IEA) , global electricity consumption by data centers will more than double between 2023 and 2030 – with AI being the main driver of this growth. Data centers serving AI alone will require four times more energy during this period.
This has already become a real problem. In 2024, global energy demand grew twice as fast as the historical average. As the size and complexity of AI models increase, they not only strain infrastructure but also contribute to climate change. Electrical grids in developing markets are suffering the most from this.
In short, we can’t keep up with powering the technologies we are creating.
Solution: Startups with scalable innovations
To address this problem, Extreme Tech Challenge (XTC) and TNW have launched the Energy Innovation for AI Startup Challenge, which is seeking startups offering new approaches in the energy sector.
This competition is paving the way for bold ideas: revolutionary changes in next-generation renewable energy sources, breakthroughs in energy storage technologies, smart grids, and how data centers operate and cool down. This challenge requires startups to rethink energy not only for AI but for the entire planet.
One of the founders of XTC, Young Sohn, said about this:
“The new stage of artificial intelligence cannot develop based on yesterday’s energy foundations.”
The competition is currently open, and the top 5 promising startups will present their ideas to investors and global technology leaders at the TNW conference in Amsterdam in June 2025.
The technology industry is now relying on internal resources
Interestingly, AI, which is part of the problem, can also become an integral part of the solution. The International Energy Agency (IEA) emphasizes that more efficient use of resources – specifically with the help of AI – can reduce energy pressure. However, this strategy cannot become a sustainable solution without deep technological innovations.
Now startups have become not just authors of technological innovations, but powerful “designers” who are reimagining entire systems. They are pondering how to power technology in a world where intelligence is ubiquitous, but energy is limited.
According to Sohn, the main goal is to find technologies that can develop artificial intelligence without harming Earth’s resources.
This choice marks a turning point in the approach to artificial intelligence: AI is now viewed not only as a force shaping the future but also as a phenomenon requiring a new type of infrastructure, responsibility, and energy strategy.
Prepared by Navruzakhon Burieva
