Investment in artificial intelligence (AI) startups has surged, with over half a trillion dollars poured into the sector. However, according to Sightline Climate, the next smartest move might be investing in energy technology.

The report reveals that up to 50% of planned data center projects may face delays due to power access issues. Only 5 gigawatts out of 190 gigawatts worth of tracked data centers are under construction, with a significant portion—about 36%—seeing their timelines slip in 2025.

Big tech companies like Google and Meta have allocated substantial resources to develop solar, wind, and nuclear projects. They’re also supporting emerging technologies through direct investments and partnerships with utilities to accelerate adoption. But the power problem remains a critical constraint for data centers, expected to drive up AI’s energy consumption by 175% by 2030.

Dozens of startups are addressing this challenge. Amperesand, DG Matrix, and Heron Power are developing new power conversion technologies, while companies like Camus and GridBeyond are building software to manage the flow of electrons. Meanwhile, Google’s innovative approach in Minnesota combines wind, solar, and a massive battery from Form Energy.

Investors are also eyeing solid-state transformer startups as traditional transformers become too bulky for high-power density data centers. These new technologies aim to replace several pieces of equipment, offering cost-competitiveness despite higher initial costs.