The best AI investment might be in energy tech

The article highlights a shift in venture capital interest from AI startups themselves toward energy technologies that support AI infrastructure, particularly data centers. While AI investment has surged over the past five years, the growing power demands of AI-driven data centers—expected to increase by 175% by 2030—are creating significant energy supply challenges. Data center construction is slowing, with many projects delayed due to power constraints and grid limitations, presenting an opportunity for investors to focus on energy innovations that can alleviate these bottlenecks. Major tech companies like Google, Meta, Amazon, and Oracle are actively investing in renewable energy projects (solar, wind, nuclear) and emerging power technologies to reduce reliance on the traditional grid. They are exploring on-site and hybrid power solutions, including grid-scale batteries and new rate structures with utilities, to manage rising electricity costs and grid shortages. Notably, Google’s partnership with Form Energy for advanced battery storage exemplifies this trend. Additionally, the article points out the need for modernizing power management