Elemental Impact: Facilitating Big Tech's Sustainability

A new investment initiative led by Elemental Impact is bringing together Amazon, Google, Meta and Microsoft to accelerate next-generation energy, power and cooling solutions for data centres.

As artificial intelligence drives unprecedented demand for compute, data centres are rapidly becoming one of the most energy-intensive parts of global infrastructure. This expansion is intensifying pressure on electricity supply, grid resilience, cooling systems and carbon emissions.

In response, Elemental Impact is positioning data centres as real-world testbeds for emerging energy technologies through its newly launched Data Center Innovation Initiative (DCII), backed by major hyperscalers like Amazon, Google, Meta and Microsoft, alongside philanthropic partners including Breakthrough Energy Discovery, Builders Vision Philanthropy, Salesforce and the Stolte Family Foundation.

The initiative is designed to bridge the gap between innovation and deployment, particularly for energy-focused start-ups seeking to scale.

Facilitating innovation

Elemental Impact says the DCII will invest between US$500,000 and US$5m in up to 10 start-ups through 2027, with a strong emphasis on energy systems, power infrastructure, cooling technologies and sustainable materials.

The programme aims to use the rapid buildout of data centres to fast-track technologies that could later be adopted across broader energy and industrial systems.

“We see this historic buildout of data centres as a way to pull forward important innovations that we've been investing in for many years – across energy, materials and water,” says Dawn Lippert, CEO and Founder of Elemental Impact.

“By collaborating with Amazon, Google, Meta and Microsoft, we can help accelerate how these entrepreneurs are deploying – commercialising technologies that reduce emissions and deliver more positive impact for communities, including affordable, reliable energy.”

Data centres as energy proving grounds

The launch comes at a time when hyperscale operators are under increasing scrutiny over energy consumption and their ability to meet climate targets.

AI-driven workloads are pushing electricity demand higher, forcing operators to find ways to reduce emissions while maintaining growth.

Within the DCII, participating companies will help prioritise energy challenges, support due diligence and enable pilot deployments either in live data centre environments or dedicated demonstration sites.

Key focus areas include energy storage systems to stabilise and decarbonise power supply, advanced electrical infrastructure to strengthen resilience and industrial cooling technologies that cut both water and energy use. Low-carbon construction materials also feature, reflecting the scale of ongoing data centre expansion.

“Sustainable data centre design represents one of the fastest-growing opportunities for new technology adoption today," says Melanie Nakagawa, CVP and Chief Sustainability Officer at Microsoft.

“That's why Microsoft has joined with Elemental Impact to convene industry leaders and innovators across the ecosystem in pursuit of promising technologies to reduce emissions.

“Our focus is on helping scale solutions to deliver reliable, clean power and sustainable materials, while improving efficiency and resiliency in the communities where we operate.”

Elemental Impact will also document project outcomes to provide practical evidence for operators assessing new energy technologies, particularly those still considered high risk.

How to meet the rising demand for energy

The initiative reflects a broader shift among hyperscalers towards collaborative approaches to shared energy challenges.

Google positions the programme within its long-term climate and energy strategy, emphasising partnerships across both the technology and utilities sectors.

“At Google, we've long believed that no one can solve climate change alone, and that true leadership is built through partnership,” says Kate Brandt, Chief Sustainability Officer at Google.

“This initiative with Elemental Impact complements our third decade of climate action and builds on our long-term track record of helping to accelerate and create markets for clean energy and sustainability solutions.

“We are proud to work with these collaborators to pilot and scale the next generation of energy and material technologies, supporting our shared ambition to build a more resilient and sustainable future for everyone.”

Amazon's Kara Hurst also highlights how operational experience from its global data centre footprint will inform the initiative.

“Amazon has shown leadership in energy and water efficiency across our data centre infrastructure for two decades, and the Data Center Innovation Initiative lets us put that operational expertise to work alongside entrepreneurs solving challenges in carbon-free energy, advanced cooling and lower-carbon materials,” the Chief Sustainability Officer at Amazon says.

“Our goal isn't just to prove these technologies work at scale – it's to create a shared playbook that accelerates adoption across the industry and delivers real benefits to the communities where we operate.”

Scaling energy solutions beyond the data centre

While the DCII is centred on data centres, Elemental Impact sees the initiative as a catalyst for wider energy system transformation.

Technologies proven through the programme could ultimately be deployed across manufacturing, healthcare, education and local energy networks, extending their impact well beyond the digital economy.

The organisation also plans to work closely with partners on workforce development and local engagement during project rollouts, recognising the importance of community integration.

According to Elemental Impact, 98% of companies in its current portfolio report community partnerships as critical to success.

Meta views the initiative as an opportunity to accelerate energy and sustainability technologies that have yet to scale commercially.

Nat Sahlstrom, VP of Energy and Sustainability at Meta, says: “Data centres are uniquely positioned to serve as catalysts for clean energy and sustainable building materials.

“What excites us about the DCII is the focus on advancing emerging technology projects, building on Meta's commitment to designing, building and operating sustainable and innovative data centres.

“By sharing what we learn together, we can support entrepreneurs to scale faster and move these innovations to real-world impact.”