AI data centers take to the sea with new Silicon Valley fundraising

Plus, the investing thesis might have changed on clean energy but the game remains the same

In today’s edition:

— Top Silicon Valley fundraisers are investing in a new AI idea that takes energy from the sea

— Clean energy investments are rising. Just don’t say it’s to fight climate change

— Mexico City is sinking, but also faces a water crisis

— Desalination plant targeted to offset the shrinking Rio Grande

— More than 2.12 billion tons of waste dumped on the planet each year, analysis says

Panthalassa’s Ocean-2, a full-scale prototype deployed off the Washington coast. Photo: Panthalassa via YouTube.

In the tech arms race around AI, even space is no longer the final frontier. An ocean technology company from Oregon just raised $140 million from some of Silicon Valley’s leading fundraisers to create energy and power AI data from the sea.

Panthalassa, which has been working on ways to develop renewable energy on the high seas for more than a decade, said it hopes to use the money to complete a pilot manufacturing facility that would begin commercial development as soon as next year. The money raised, including from notable names such as Peter Thiel, venture capitalist John Doerr, and Salesforce founder Marc Benioff, values the company at about $1 billion.

The Portland-based company said it developed large nodes, about 300 feet high, that would float among the waves, drive themselves around, and produce energy from waves by pushing it through turbines. The unique AI angle is that it would use the energy to develop AI data on the spot, not transmit the energy, instead transfer just the data via satellite.

It’s a particular feature of the current AI boom in that almost no idea seems too ridiculous. AI data centers in space, as Elon Musk wants, would be closer to the sun. AI data centers in the ocean would solve the issue of finding enough water to cool the AI server, which is a major problem for new data centers on land. The industry is so nascent — and so untested — that to startup investors almost anything is worth a bet as long as it is unique (and mentions AI).

If this all seems like the very peak of a bubble, it’s probably not. The latest earnings releases from the big tech players such as Google GOOGL 0.00%↑, Amazon AMZN 0.00%↑ and Microsoft MSFT 0.00%↑ show revenue from AI is keeping up with massive spending plans. So, it’s not like the Internet bubble. But it’s worth it for investors to keep their eyes focused on the development of these data centers, not the news releases, as with all new ideas the real execution is in the buildout.

And maybe while Panthalassa is at it, it can use the nodes to collect some of that sea waste along the way.

If you have ideas or suggestions for us, contact me directly at
dcallaway@callawayclimateinsights.com.

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Tuesday’s investor insights

Renewable energy funds in spotlight as investors see shift in demand