It can be said that this is both the best of times and the worst of times... I won't go into detail about the second half of that statement, but this cliché by Dickens indeed encapsulates this year's New York Climate Week.

A large portion of the climate technology community, just like other sectors of the U.S. economy, is actively riding on the wave of AI. There are some reservations regarding the large-scale construction of natural gas power plants to supply electricity to AI data centers. However, since many climate technology startups are focused on energy or closely related to it, this wave of construction is seen as an opportunity to help these companies overcome the "valley of death."

However, this almost singular focus also means that some promising niche areas may be at risk of being overlooked.

This continues a trend that has been evident over the past year. As it has become increasingly difficult for climate technology companies to raise funds—whether due to the cancellation of federal grants or the hesitant attitudes of investors—those companies that have been able to adjust their narratives to fit into the AI frenzy have done so.

This shift has helped many climate technology startups secure new funding from investors. According to the latest data from PitchBook, the total value of venture capital transactions has been rising for four consecutive quarters and exceeded $14 billion in the first quarter of this year. This represents the best financing environment for climate technology in recent years, with most of the transaction volume driven by sectors boosted by data center construction, including building environments, power grid infrastructure, and dispatchable energy that can be started and stopped on demand.

Few people are willing to miss such an opportunity.

During a panel discussion at the New York Climate Week, an exchange exemplified the current atmosphere: when asked whether they preferred that the infrastructure construction of AI proceed at the current pace or at a slower pace that would be more climate-responsible, both founders unhesitatingly stated that the faster, the better. As expected, both of their startups are in the energy sector.

But not everyone agrees with this.

I interviewed several founders, who believe that the craze around data centers is diverting market attention away from other potential sectors of climate technology, including those companies that can achieve their goals without relying on the AI craze.

"Corporate clients are still interested in climate issues," one of the founders told me. The difference is that nowadays, large companies are reluctant to promote this openly, mainly out of concern for provoking dissatisfaction with the Trump administration.

There are also signs that some people are beginning to feel tired of the AI craze. For many startups, even if they had shown good results three years ago, it was still very difficult to find funding for expansion. Today, however, customers are eager to request demonstrations. I asked a few people, "Where did all that money go three years ago?" The response I received more than once was an understanding roll of the eyes.

They also admit that this is the world they live in today. Smart entrepreneurs are finding ways to connect with their customers where they are.

In the end, the underlying message of New York Climate Week is this: This data center party will not last forever, but it may last long enough to help startups build sustainable businesses. Once they achieve that, they can once again focus on the mission of reducing carbon emissions that they pursued when they were first founded.