Elemental Impact, a nonprofit that invests in climate tech, has launched the Data Center Innovation Initiative (DCII), with up to $5 million (€4.3 million) in funding available to companies developing “novel industrial cooling solutions to reduce energy and water use.”
In addition to industrial cooling solutions, Elemental Impact is also providing funding to companies developing technologies for clean concrete, clean metals, clean alloys, energy storage and power infrastructure. Up to 10 companies will receive funding, which ranges from $500,000 to $5 million (€430,000 to €4.3 million).
The DCII is a collaboration of Elemental Impact and tech giants Amazon, Google, Meta and Microsoft. Elemental said that the companies will “help identify priority technology areas and support project deployment opportunities.”
“By collaborating with Amazon, Google, Meta, and Microsoft, we can help accelerate how these entrepreneurs are deploying commercializing technologies that reduce emissions and deliver more positive impact for communities, including affordable, reliable energy,” said Dawn Lippert, CEO and Founder of Elemental Impact, in a press release.
Elemental Impact said for-profit, stand-alone companies with a novel business model or technology that has an environmental and local impact “within the scope of the DCII” are encouraged to apply for funding.
A company is a strong fit for the DCII if it has at least 20 full-time employees and has demonstrated traction through completed pilots, commercial-scale deployment and the ability to scale rapidly, Elemental Impact said.
Technical requirements: Applicants are expected to showcase how their technologies can deliver either a 30–80% reduction in water usage effectiveness (WUE) or a 20–40% reduction in cooling-related energy use and/or power usage effectiveness (PUE).
- According to Elemental, solutions should be able to operate across ambient temperatures from 0 to 40°C (32 to 104°F) without performance degradation. They should be retrofit-ready and require less than 10% downtime impact. They should also be compatible with existing infrastructure for data center cooling and HVAC.
- The solutions also have to meet compliance regulations, be scalable across multiple sites and offer a “clear pathway to attractive total cost of ownership.”
After the application: Selected companies will work with Elemental to finalize the investment terms, project milestones and the scope of work.
- Companies will work with Elemental and “technical collaborators” over an anticipated 12–18-month project period.
- Each new technology is set to be tested in existing data centers or demonstration sites.
- Funds will be used for pilot deployments or other initiatives aimed at advancing commercialization.
Natural refrigerants in data centers: While natural refrigerant-based cooling systems aren’t used in great numbers in data centers, they are present in everything from small edge data centers to larger colocation centers.
- In 2024 Zudek replaced an R407C chiller at a data center in Germany with an ammonia (R717) unit that was 43% more efficient.
- M&M Carnot’s CO₂ (R744) CRAC (computer room air-conditioner) units can also be used in retrofit projects and offer a free cooling function that can drastically reduce energy use.
Quotable: “Amazon has shown leadership in energy and water efficiency across our data center 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,” said Kara Hurst, Chief Sustainability Officer at Amazon, in a press statement.
The program is open to companies from around the world, and those interested in applying can submit an application at this link. The deadline to apply as a priority applicant is July 15, 2026.
