Announcing Our Investment in Fluix

Data centers have been the unheralded backbone of our digital world for decades, quietly powering the internet, cloud computing, and now AI.

But as demand for computational power accelerates at an unprecedented pace, we find ourselves at an inflection point.

Behind every AI breakthrough is an unseen cost: the soaring energy and water demands of the data centers powering it all. A single query to an advanced LLM like OpenAI’s GPT 4o consumes ten times the energy of a typical Google search. In 2022, data centers consumed 2-3% of all U.S. electricity—a figure on track to triple by 2030. For data center operators and their clients, the question is no longer just about keeping the lights on; it’s about finding smarter ways to extract more compute power from every kilowatt, turning efficiency into a competitive advantage.

That’s why Shadow Ventures is thrilled to announce our latest investment in Fluix.ai, a startup enabling data centers to put their operational power optimization programs on autopilot to save 40-60% on operational energy costs.

Fluix has pioneered proprietary reinforcement learning AI models to achieve this energy savings. Their platform is unique: it combines real-time server telemetry with environmental data to optimize the data center as a holistic system—HVAC, cooling, and energy usage. Unlike hardware-dependent solutions or those focused on single-vector improvements, Fluix’s software-only, hardware-agnostic platform ensures seamless implementation and maximum impact.

What makes Fluix’s approach particularly compelling is its focus on colocation data centers. The global colo data center market was valued at approximately $54.82 billion in 2022 and is projected to grow at a CAGR of 14.2% through 2030. These data centers typically lack the resources and system homogony of hyperscalers like AWS or Google but face all the same challenges of managing energy and cooling demands. Fluix’s cost-effective, flexible, and easy-to-deploy solution is tailor-made for this market.

Fluix’s early results are promising:

• In a collaboration with Solideon, an automated aerospace manufacturing based in Berkeley, California, Fluix's Autonomous AI achieved a remarkable 65% reduction in HVAC energy consumption within Solideon's server room. This optimization maintained optimal environmental conditions and server performance, resulting in an overall site-wide energy consumption reduction of approximately 40%. (Fluix)
• In another case, Nanyang Technological University (NTU) in Singapore used Fluix to successfully reduce total energy expenses by 33%.This optimization resulted in a 37% reduction inannual CO2 emissions due to decreased energy consumption. (Fluix)

Led by second-time founder Abhi Sastri, who previously developed CPU water-cooling technologies, Fluix’s leadership brings a rare combination of technical expertise and business savvy. Their deep understanding of data centers and derivative technologies gives us confidence in their ability to scale.

We’re proud to partner with Fluix as they revolutionize the way data centers operate, driving innovation, efficiency, and scalability in the AI era. To see how Fluix is shaping the future of digital infrastructure, visit their website to learn more.

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