Namratha Kothapalli, principal at Speedinvest

Analysis

February 21, 2025

Why data centre startups might not be VC-backable

VCs report getting lots more pitches for physical data centre startups amid the AI boom — but they're largely waiting to invest

Anne Sraders

7 min read

Data centres are the hot area du jour, as the AI boom is pushing the need for more computing power up and to the right. And although investors are no stranger to funding the big buildings and servers — private equity, for example, has long backed such infrastructure — it seems that recently more young data centre companies are pitching themselves to VCs.

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Anne Sraders

Anne Sraders is a senior reporter at Sifted, based in Berlin. She covers the venture capital industry and deeptech startups, including robotics, spacetech and defence tech. She also writes Sifted's weekly VC newsletter Up Round. Follow her on X and LinkedIn

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