Emerald AI raises $150 million Series A to tackle AI data center power demands
Emerald AI, a startup focused on managing AI data center power demands, has raised $150 million in Series A funding. The company's technology dynamically adjusts electricity consumption based on grid conditions to free up power for AI while maintaining grid reliability. Emerald AI is partnering with companies including Nvidia and Digital Realty to launch a power-flexible AI data center in Manassas, Virginia, later this year.
Emerald AI, a startup dedicated to tackling the escalating power demands of artificial intelligence data centers, announced it has secured $150 million in a Series A funding round, elevating its valuation to $1.05 billion. This round was co-led by investment firms Energize Capital and DCVC, bringing the company's total funding to over $220 million.
Founded in 2024 by CEO Dr. Varun Sivaram, Emerald AI develops software that enables AI data centers to adjust their electricity usage dynamically according to grid conditions. This innovative approach aims to unlock over 100 GW of power capacity for AI operations while concurrently enhancing grid reliability and affordability for local communities. The company has successfully tested its technology for 18 months across five global data centers and is now implementing it commercially at full data center scale with major AI firms, data center platforms, and power utilities.
Amid a surge in electricity demand from data centers driven by rapid AI expansion, Emerald AI's technology offers a timely solution. Analysts at Morgan Stanley predict a global electricity demand increase exceeding 1 trillion kWh annually through 2030, with data centers contributing nearly 20% of this growth. To address this, Emerald AI is collaborating with industry leaders such as Nvidia, Digital Realty, Nebius, and EPRI to inaugurate the world's first power-flexible AI data center in Manassas, Virginia, scheduled for launch later in the year. Additionally, the company is partnering with Silicon Valley Power on the nation's inaugural Flexible Load Interconnection Program (FLIP) to supply more electricity capacity to adaptable AI data centers.