Elemental Impact, a nonprofit investor, launched the Data Center Innovation Initiative on Wednesday with Amazon $AMZN, Google $GOOGL, Meta $META, and Microsoft $MSFT as partners, aiming to accelerate the deployment of clean energy and materials technologies in data center environments.
Funding for individual projects will range from $500,000 to $5 million, with the initiative targeting as many as 10 startups before the end of 2027. Startups working in areas such as energy storage, low-carbon materials, advanced electrical systems, and industrial cooling are among those the initiative seeks to support. Validated solutions would then be candidates for broader deployment across energy and industrial sectors, with testing conducted at operating data centers or purpose-built demonstration facilities.
The four tech companies are expected to contribute throughout the process — from flagging which technology areas deserve attention, to advising on deals, to facilitating deployment opportunities and publishing learnings so the broader industry can move faster, the company said. Philanthropic partners include Breakthrough Energy Discovery, Builders Vision Philanthropy, Salesforce $CRM, and the Stolte Family Foundation. Wilson Sonsini is serving as legal partner.
Dawn Lippert, CEO and founder of Elemental Impact, said in a statement that the data center buildout represents an opportunity to advance technologies the organization has invested in for years. "By collaborating with Amazon, Google, Meta, and Microsoft, we can help accelerate how these entrepreneurs are deploying — commercializing technologies that reduce emissions and deliver more positive impact for communities, including affordable, reliable energy," Lippert said.
In a statement, Microsoft Chief Sustainability Officer Melanie Nakagawa called sustainable data center design "one of the fastest-growing opportunities for new technology adoption today," adding that the company is working to scale technologies that bring reliable, clean power and sustainable materials to the communities where it operates.
The initiative arrives as data centers face mounting public scrutiny over their strain on local power grids. Community opposition stalled or halted projects representing more than $156 billion in planned construction last year alone, driven in part by concerns over rising electricity costs for residential customers. Research published in Environmental Research Letters found data centers' share of national power demand more than doubled between 2018 and 2023, and projected that wholesale electricity prices nationwide could be 6% to 29% higher by the end of the decade depending on the pace of growth.
Elemental Impact said the initiative is designed to document and share results across the industry to reduce risk for future adopters and accelerate integration into new data center builds and retrofits. The organization said 98% of its current portfolio companies report that community partners have been critical to their success.