The increasing demand for energy in data centers has led to a significant investment in C2i Semiconductors, an Indian startup focused on enhancing power solutions. C2i has successfully secured $15 million in a Series A funding round, bringing its total financing to $19 million since its establishment in 2024. The round was led by Peak XV Partners, with contributions from Yali Deeptech and TDK Ventures.
This investment comes as projections indicate that electricity usage in data centers could nearly triple by 2035. A report from BloombergNEF anticipates this surge, while Goldman Sachs Research forecasts a 175% increase in power demand by 2030. C2i aims to address the inefficiencies in power conversion, which currently waste approximately 15% to 20% of energy, according to co-founder and CTO Preetam Tadeparthy.
C2i's innovative approach integrates power conversion and control into a single, plug-and-play system that spans from the data center's bus to the processors. By improving efficiency, the company estimates it can save around 100 kilowatts for every megawatt consumed, positively impacting cooling costs and overall data-center economics. This strategy is pivotal as the industry shifts to manage the rising costs associated with AI infrastructure.