A new contest is searching for solutions to a defining problem of the AI era: soaring energy consumption.

The Energy Innovation for AI Startup Challenge launches amid growing concern over the environmental cost of artificial intelligence.

Just last month, the International Energy Agency (IEA) warned that global electricity demand from data centres is set to more than double by 2030 — with AI the main driver. Demand from dedicated AI data centres alone is forecast to more than quadruple.

The surge threatens to deepen an already critical issue. Last year, Growth in global energy demand soared to almost twice its recent average, according to the IEA. As the increase accelerates, it’s set to intensify climate change, strain infrastructure, widen inequalities, and deplete vital resources.

It’s a problem partly caused by tech. It’s also a problem we need tech to solve. That’s the impetus behind the Energy Innovation for AI Startup Challenge.

Powered by Extreme Tech Challenge (XTC) — the world’s largest startup competition for entrepreneurs addressing global challenges — and run in partnership with TNW, the contest is looking for startups tackling AI’s growing appetite for energy.

The challenge welcomes a range of ideas, from advanced renewables and next-gen energy systems to smart grids and data centre optimisation.

Young Sohn — the chairman and co-founder of XTC and the founding managing partner of VC fund Walden Catalyst Ventures — said the need for new approaches is essential. 

“The next era of AI cannot be built on yesterday’s energy paradigms,” he told TNW. “We’re challenging innovators to deliver transformative energy solutions that will power the AI revolution sustainably.” 

Applications for the challenge are open now — but startups need to act fast. The deadline for entries is April 30.

Five finalists will pitch their ideas on stage at TNW Conference on June 19 in Amsterdam. 

As well as gaining global exposure, the startups will connect with top-tier investors, corporate leaders, and policymakers.

Sohn — who will discuss the future of deep tech at TNW Conference with former ASML CEO Peter Wennink — urged startups to submit their energy ideas.

“Show us your breakthroughs in advanced renewables, high-density energy storage, intelligent grid architectures, or novel harvesting technologies — the systems that will allow AI to scale responsibly,” he said.

“The five selected startups invited to pitch on stage at TNW 2025 will define how the world balances technological progress with planetary boundaries.”

If you want to watch the pitching contest, Young Sohn’s talk with Peter Wennink, or anything else on the packed agenda for TNW Conference, we have a special offer for you. Use the code TNWXMEDIA2025 at the check-out to get 30% off your ticket.