Startup competition aims to find sustainable solutions for AI's energy requirements.

      A new competition is seeking solutions to a significant issue of the AI era: increasing energy consumption. The Energy Innovation for AI Startup Challenge is being launched in response to rising concerns about the environmental impact of artificial intelligence. Recently, the International Energy Agency (IEA) warned that global electricity demand from data centers is projected to more than double by 2030, with AI being the primary contributor. Specifically, demand from dedicated AI data centers is expected to more than quadruple.

      This increase poses a risk of exacerbating an already critical situation. According to the IEA, global energy demand surged last year, reaching nearly twice its recent average. As this demand grows, it is likely to escalate climate change, put pressure on infrastructure, widen inequalities, and exhaust essential resources.

      The challenge stems partly from technology itself. However, technology is also needed to address this issue. This is the driving force behind the Energy Innovation for AI Startup Challenge.

      Organized by Extreme Tech Challenge (XTC) — the largest startup competition worldwide focused on entrepreneurs tackling global issues — and in collaboration with TNW, the contest is seeking startups that are addressing the increasing energy needs of AI.

      The challenge is open to a variety of proposals, ranging from innovative renewables and next-generation energy systems to smart grids and optimization of data centers. Young Sohn, chairman and co-founder of XTC and founding managing partner of the VC fund Walden Catalyst Ventures, emphasized the necessity for new strategies.

      “The next phase of AI cannot rely on outdated energy models,” he stated to TNW. “We’re urging innovators to provide transformative energy solutions that can power the AI revolution sustainably.”

      Applications for the challenge are currently open, but startups must act quickly, as the submission deadline is April 30. Five finalists will present their concepts on stage at the TNW Conference on June 19 in Amsterdam.

      In addition to gaining international visibility, the startups will connect with top-tier investors, corporate leaders, and policymakers. Sohn, who will be discussing the future of deep tech at the TNW Conference alongside ASML CEO Peter Wennink, encouraged startups to share their energy innovations.

      “Demonstrate your advancements in renewable energy, high-density energy storage, intelligent grid structures, or innovative harvesting technologies — the systems that will enable responsible scaling of AI,” he remarked.

      “The five chosen startups invited to pitch at TNW 2025 will play a crucial role in determining how the world balances technological advancement with ecological limits.”

      If you're interested in watching the pitch competition, Young Sohn’s discussion with Peter Wennink, or any other events on the dense agenda for TNW Conference, we have a special offer for you. Use the code TNWXMEDIA2025 at checkout to receive 30% off your ticket.