The artificial intelligence boom was the main topic at this year's New York Climate Week. Many climate tech startups are now pitching themselves as solutions for AI data centers.
The shift has brought fresh money into the sector. But some founders say it is also pulling attention away from other parts of climate tech.
Climate Tech Funding Rises With Data Center Demand
Many climate tech companies work in energy or related fields. That puts them in a good position to serve the growing number of AI data centers being built across the U.S.
The trend has been building for about a year. Climate startups had trouble raising money after federal grants were canceled and some investors pulled back. Companies that could change their pitch to fit AI demand did so.
The change has paid off for many of them. Total venture deal value in climate tech has risen for four straight quarters, according to PitchBook. It passed $14 billion in the first quarter of 2026, the most recent data available.
It is the best fundraising environment the sector has seen in several years. Most of the money has gone to areas helped by data center construction. These include the built environment, grid infrastructure, and dispatchable energy, which is power that can be turned on or off as needed.
For many startups, the funding helps them get through the "valley of death." That is the stage when young companies need money to grow but struggle to find it.
Some in the industry have concerns about the large number of natural gas power plants being built to run AI data centers. Still, most startups have treated the buildout as a chance they cannot pass up.
One panel at the event showed this clearly. Two founders were asked whether they wanted the AI buildout to continue at its current pace or slow to a more climate-friendly speed. Both said faster was better, and both of their startups work in energy.
Some Founders Push Back on AI Focus
Not everyone at the event shared that view. Several founders said the data center boom was drawing attention away from other promising parts of climate tech.
Some of those companies are meeting their goals without relying on AI demand. They worry they could be overlooked while investors chase data center deals.
"Corporates are still interested in climate," one founder told TechCrunch. The difference now is that large companies are less willing to talk about it in public, mostly for fear of drawing criticism from the Trump administration.
There were also signs that some people are growing tired of the AI focus. Three years ago, many startups struggled to find money to grow, even with strong results. Today, customers are pushing to see product demos.
When asked where this money was three years ago, several people answered with knowing eye rolls. Still, they said this is the market they now work in. Smart founders are finding ways to meet customers where they are.
The general view at New York Climate Week was that the data center boom will not last forever. Many attendees hope it lasts long enough for startups to build stable businesses. Once that happens, they plan to return to their main goal of cutting carbon emissions.
