Verse, supported by Nvidia, has secured $54 million to enhance AI data center capabilities.

      For years, the limited resource in AI was chips, but now it has shifted to power. Verse Enterprises aims to alleviate this bottleneck. The San Francisco startup has successfully raised an oversubscribed $54 million in its Series B round, with Bessemer Venture Partners leading the investment, and participation from GV, Nvidia, and Norrsken VC.

      The competition in AI has transformed into a competition for power. Data centers are expanding at a pace quicker than what the power grids can accommodate. In many areas, developers are left waiting for years just to connect to the grid. Generation shortages, transmission bottlenecks, and lengthy interconnection queues all contribute to delays.

      The pressure is evident everywhere. Denmark recently halted new grid connections due to AI data centers overwhelming its infrastructure. Additionally, the EU has requested households to reduce power consumption during peak hours. According to Verse, hundreds of data centers are stuck in utility queues, which they assert results in $500 billion of potential annual revenue being lost.

      Bypassing the queue with batteries

      The latest updates from the EU tech landscape, insights from our astute founder Boris, and some dubious AI-generated art. Get it for free, delivered to your inbox weekly. Sign up today! Verse’s solution is to bypass the waiting line. Their new product, Dispatch Intelligence, manages on-site batteries and solar power in real time. This approach makes the grid perceive a flexible load rather than a constant one, allowing data centers to maintain full computing capabilities without throttling.

      For hardware, Verse has partnered with battery manufacturer Calibrant Energy, which supplies the on-site storage and solar, while Verse handles the software. This strategy employs the same behind-the-meter logic that is now driving investments into clean-energy-as-a-service startups. According to the company, their collaboration can expedite the addition of new capacity by up to three years.

      “Clean energy is, in fact, the economically feasible solution due to its rapid deployment speed,” stated Seyed Madaeni, co-founder and CEO of Verse.

      Will utility companies cooperate?

      However, this model is not guaranteed to succeed. Allison Weis, the global head of storage at Wood Mackenzie, explains that while flexibility can reduce barriers to connectivity, it does not ensure success. Utility companies have yet to establish standards for how data centers can achieve faster online connectivity, nor have they confirmed that batteries or on-site power will be recognized.

      “There’s no standardized framework,” Weis commented. This situation may soon change, as US federal regulators are expected to release guidance on expediting data-center connections. The key question remains: who bears the cost? Will it be hyperscalers through their own generation, or everyone else through upgrades to the grid?

      What the funding will be used for

      Verse is not the only contender in this sector. Nvidia is also supporting Emerald AI, which develops similar software, and Verse is integrating Dispatch Intelligence with Nvidia’s DSX AI Factory design intended for large-scale sites. Nvidia has a strong incentive to assist: each data center stuck in a queue is a potential customer unable to purchase its chips.

      The startup intends to act swiftly, aiming to oversee more than 100 sites within a year. For Verse, clean power has shifted from being a sluggish option to becoming a quicker path forward.