Executive summary

The arrival of the AI revolution and breakthroughs in quantum, neuromorphic, and optical computing bring major progress, but these power-hungry advances also worsen the climate crisis. Simply using green energy for data centres will not be enough – we need radical innovations in computing efficiency, and we need them fast.

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This is why World Fund, Dealroom, and Ignite (Intel’s startup programme) have collaborated to publish a White Paper exploring next-generation computing developments. The paper covers emerging computing technologies, material advancements, and software improvements with the potential to reduce the carbon footprint of AI and modern computing.

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The paper also includes new and exclusive data from Dealroom and detailed market mapping of key investment opportunities. For example, it reveals that 54 European next-gen computing startups with significant climate performance potential have raised $970m since 2019, with $305m raised in 2024 alone. Over half of these startups were founded in the last five years, including 12 in the past year.

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Chapter 1

The computing x climate problem to solve

Full White Paper available <span style="color: #4F2780 !important; text-decoration: underline !important;">here.</span>

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The International Energy Agency (IEA) reports that data centres now account for 0.6% of global emissions, rising to 1% when including data transmission [1]. This is due to their high energy use, which amounts to 1% of global electricity and 2–4% in the U.S. and EU [2]. By 2030, consumption is expected to exceed 1,000 TWh, resulting in 600 Mt CO₂ emissions annually – equivalent to 2.8% of global electricity use and 1.9% of CO₂ emissions. [3- 4].

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AI demand is a key driver, with generative AI traffic in 2025 up 251% from 2024 [5]. By 2030, the AI industry is projected to reach $1.8tn [6], and AI-related computing demand is now doubling every 3–4 months [7] - far exceeding the previous two-year trend. This surge increases reliance on these data centres, which are still largely powered by fossil fuels [8].

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This is already driving up tech giants’ emissions. In 2024, Microsoft reported a 29% rise in emissions since 2020 [9], while Google saw a 48% increase since 2019 [10], both due to AI compute demands.

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Switching data centres to renewables alone won’t fully decarbonise AI, IoT, cryptocurrency, and device emissions. We must redesign how we compute to secure a sustainable, AI-powered future. This means investing in hardware and software advances, including on semiconductors which are key, especially with AI demand set to drive a $500bn industry expansion over the next decade [11].

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<span style="font-weight: 500;">Global demand for data center capacity could more than triple by 2030</span>

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<span style="font-weight: 500;">AI is the key driver of growth in demand for data center capacity</span>

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Chapter 2

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The solutions - and why they represent a massive investment opportunity

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This White Paper explores key investment opportunities in:

<span style="font-weight: 500;">» Semiconductor Innovations:</span> New materials like Gallium Nitride (GaN) and Silicon Carbide (SiC) for efficiency.

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<span style="font-weight: 500;">» Computing Technology:</span> Advancements in quantum, neuromorphic, and optical computing to cut energy use.

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<span style="font-weight: 500;">» Software Architecture Improvements:</span> Optimising algorithms and data management to reduce power consumption.

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European startups are leading advances in this space, and developments are driving rapid Industry transformation. For example, quantum startups secured $1.5bn across 50 deals in 2024 [12], and investors are accelerating their funding.

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As revealed in this White Paper, over $970m has been raised by next-gen European computing startups with significant climate performance potential since 2019, with around half coming from VC funding [13]. Most of these computing startups are at an early stage, with over half launched in the last five years and 12 launched in the past year alone.

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<span style="font-weight: 500;">VC funding in selected european green computing startups</span>

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Additionally, Dealroom data shared in the paper shows that 2024 was the best year for European green computing startup fundraising, with $305m raised by early and breakout-stage companies.  This is a testament to green computing as an emerging and fast-developing sector that deserves greater attention – and demonstrates that Europe is a leader in this field.

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European companies identified in the paper include, among others, GaN Systems, Space Forge, IQM, and Black Semiconductor. You can view the interactive map on Dealroom here.

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Chapter 3

Looking to the future

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To accelerate the commercial adoption of these innovations, companies require increased investment from both private and public sources, as well as a supportive regulatory framework. This is crucial if  Europe is to deliver on its potential to develop world-leading next-generation technologies that maximise advanced computing's potential while minimising its environmental footprint.

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You can read our full report, discover more data, and find out more about the European innovators in this space in the White Paper available for download below.