AI data centre software startup Emerald AI raises $150 million at $1.05 billion valuation; funding to scale grid-flexibility tech for AI data centres

Emerald AI, a Washington, D.C.-based startup, has raised $150 million in a Series A funding round, valuing the company at $1.05 billion. The funding, co-led by Energize Capital and DCVC, aims to scale its Emerald Conductor software, which enhances grid flexibility for AI data centres.¹²⁴

Emerald AI's technology allows data centres to adjust their electricity consumption based on grid conditions, thereby reducing strain during peak demand. CEO Varun Sivaram stated, “We founded Emerald AI on the conviction that the intelligence driving the AI revolution could solve its own greatest bottleneck: power.” The software is already operational at multi-megawatt scales in various locations, including Arizona and London.

The International Energy Agency predicts that data centres will account for nearly half of the growth in U.S. electricity demand by 2030. Research from Duke University's Nicholas Institute suggests that the U.S. grid could handle an additional 100GW of large electricity loads if users can reduce consumption during stress periods. Emerald AI's partnerships with major companies like Nvidia and Siemens further bolster its position in the market.

Emerald AI's technology not only supports grid reliability but also accelerates the connection of data centres to the grid, potentially unlocking significant capacity before new infrastructure is built. The company has completed five commercial demonstrations and is now entering a phase of commercial scaling, including a project in Virginia expected to come online in 2026.⁵