C2i Secures $15 Million in Funding to Tackle AI Data Center Power Efficiency
As the demand for AI-powered data centers escalates, energy efficiency is becoming a critical spotlight issue. Recognizing this challenge, C2i Semiconductors has garnered significant support from Peak XV Partners, leading to a $15 million investment in its Series A funding round. This financial boost brings the Indian startup’s total funding to $19 million, with contributions also from Yali Deeptech and TDK Ventures.
Data centers are predicted to see a nearly threefold increase in electricity consumption by 2035, according to a report by BloombergNEF. Similarly, research from Goldman Sachs estimates a staggering 175% rise in power demand for data centers by 2030, akin to adding another major power-consuming nation. Much of this demand stems not from electricity generation but from the inefficiencies in converting high-voltage power for use within data centers.
Founded in 2024 by a team of former Texas Instruments executives, including Preetam Tadeparthy, C2i is focused on revolutionizing power delivery with its unique plug-and-play system designed for large-scale AI infrastructure. The company aims to streamline the process of converting and controlling power, potentially reducing energy losses by about 10%. This reduction translates to significant cost savings, estimated at around 100 kilowatts saved for every megawatt consumed, with implications for cooling expenses and overall data center operations.
Co-founder and CTO Tadeparthy emphasizes that lower energy costs can lead to substantial economic benefits for data center operators. Industry expert Ram Anandan noted, “If you can reduce energy costs by 10% to 30%, that’s a game-changer, amounting to tens of billions of dollars.”
C2i is on track to test its first two silicon designs, expected to be complete by mid-2025. The startup is preparing to validate its technology with both data center operators and hyperscalers eager to assess performance metrics. Currently, C2i employs a skilled workforce of approximately 65 engineers and is establishing customer engagement operations in the U.S. and Taiwan.
Redefining power delivery in data centers represents a formidable challenge. Unlike other startups focusing on individual components, C2i’s approach necessitates a comprehensive redesign of power systems, encompassing silicon, packaging, and architecture. This intricate method requires significant investment and extensive production trials.
Anandan anticipates that C2i’s performance validation will happen swiftly. “We’ll know in the next six months,” he said, highlighting the importance of early customer feedback.
The growing semiconductor design landscape in India, likened to the burgeoning e-commerce market of 2008, bodes well for C2i. With a wealth of engineering talent and supportive government policies, the startup aims to establish itself as a competitive player in the global semiconductor arena.
As C2i moves forward, the effectiveness of its integrated power solutions will soon take center stage, determining its potential impact on the rapidly evolving data center industry.
