UW, Microsoft and E8 back climate tech incubator targeting data centers as AI energy concerns surge

The University of Washington's CoMotion Labs has announced a strategic partnership with Microsoft and climate investment network E8 to establish a startup incubator dedicated to tackling the environmental challenges posed by AI data centers. The upcoming four-month program, titled the 2027 Data Center Innovation Cohort, will target early-stage climate tech companies developing innovations across critical areas, including backup energy storage, electrical grid enhancements, efficient cooling solutions, electronic waste reduction, and low-carbon construction materials. The initiative comes amid mounting scrutiny over the rapid expansion of artificial intelligence infrastructure and its strain on local power grids and water supplies. Microsoft will provide funding, technical resources, and industry expertise to help participating startups commercialize, deploy pilot projects, and scale their solutions. Meanwhile, E8 will offer dedicated mentorship and help evaluate applicants. The cohort will be based at the Seattle Climate Innovation Hub downtown, with applications due on November 15 ahead of a February program launch.