Emerald AI, a U.S.-based clean energy startup, has secured $42.5 million in seed funding, including an $18 million extension, to enhance its innovative power-flexible infrastructure solutions.
Emerald AI, a clean energy startup based in the United States, has successfully raised an additional $18 million in a seed extension round, bringing its total seed funding to $42.5 million. This latest funding round was led by Lowercarbon Capital and attracted participation from notable investors including Trust Ventures, NVIDIA, and Kleiner Perkins Chairman John Doerr. The strong backing reflects confidence in Emerald AI’s mission to accelerate the development of next-generation climate technologies.
The newly acquired funds will be utilized to scale Emerald’s Conductor software for commercial applications and to expand its pilot projects and deployments across North America and the United Kingdom. This expansion is a crucial step as the company aims for wider market adoption of its innovative solutions.
In a significant development, Emerald AI has announced a partnership with NVIDIA to construct the world’s first commercial-scale, power-flexible 96MW AI factory. This facility represents a major advancement in both technology and infrastructure, and it is expected to serve as a benchmark for future AI factories. The initiative aims to establish a global network of power-adaptive data centers designed to optimize energy usage while supporting large-scale AI workloads.
Emerald AI is transforming the interaction between data centers and the power grid, shifting their role from being energy-heavy consumers to becoming active, grid-supporting assets. The company’s platform employs real-time analytics to manage computing demand, allowing it to adjust, shift, or pause workloads during periods of high grid stress, all while ensuring seamless operational performance. An early pilot project conducted at a data center in Phoenix demonstrated the effectiveness of this approach, with Emerald’s system achieving a 25% reduction in energy consumption during peak hours, thereby alleviating pressure on the grid without compromising efficiency.
Emerald’s strategy also addresses the challenges posed by outdated utility regulations that do not align with modern, flexible energy demands. As the company seeks to expand its operations nationwide, it faces additional complexities, including navigating a convoluted landscape of state and federal regulations. Coordination with the seven regional transmission organizations (RTOs) and independent system operators (ISOs) that oversee much of the nation’s power grid is also essential.
Founder Varun Sivaram and his team understand that tackling these issues requires more than just advanced software solutions; it necessitates a comprehensive systems approach that integrates technology, infrastructure, and energy policy to drive meaningful change.
Varun Sivaram brings a unique blend of scientific, technological, and policy expertise to Emerald AI’s mission. With a background in physics, he previously led strategy and innovation at Ørsted and served as Chief Technology Officer at ReNew Power, one of India’s leading renewable energy companies. Additionally, he represented the United States as a senior diplomat for clean energy at the State Department. He is joined by co-founders Ayşe Coskun, Shayan Sengupta, and Aroon Vijaykar, each contributing extensive knowledge in energy systems, large-scale computing, and market design.
According to the Emerald team, “AI data centers can deliver the economic development and grid-friendly support that communities and power utilities compete to attract. AI factories can serve as grid stabilizers and unlock vast quantities of power capacity that already exists by more effectively using today’s grid infrastructure. As a result, the power system becomes more affordable and more reliable, not less.”
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