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India's C2i Secures $19M to Tackle Data Center Power Efficiency

AI Data Centers C2i Semiconductors Peak XV Partners Startups Energy Efficiency Semiconductors
February 16, 2026
Source: TechCrunch AI
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Power Play
Media Hype 6/10
Real Impact 8/10

Article Summary

C2i Semiconductors, a Bengaluru-based startup, is tackling a critical bottleneck in the scaling of AI data centers: power delivery. The company’s innovative approach focuses on redesigning power conversion and control as a single, integrated platform, aiming to cut end-to-end losses by roughly 10% – translating to significant savings for data center operators. Securing a $19 million Series A round, co-led by Peak XV Partners, underscores the growing recognition of this challenge and C2i’s potential. Data center energy consumption is projected to triple by 2035, driven by the increasing demand for AI. C2i’s plug-and-play solution addresses the 15-20% energy waste inherent in traditional high-voltage conversion, a problem exacerbated by the move towards higher voltages. With a team of 65 engineers and plans for deployments in the U.S. and Taiwan, C2i is leveraging India’s maturing semiconductor design ecosystem and government incentives to compete with established players. The startup’s success hinges on rapid validation through customer testing, with initial silicon designs expected to return from fabrication within the next six months. The investment reflects Peak XV Partners’ strategic focus on identifying and backing transformative technologies within India’s burgeoning tech landscape.

Key Points

  • C2i Semiconductors has raised $19 million to address energy inefficiencies in AI data center power delivery.
  • The startup's integrated, plug-and-play system aims to reduce end-to-end energy losses by approximately 10%.
  • Peak XV Partners’ investment highlights the growing recognition of power efficiency as a crucial factor in scaling AI infrastructure, particularly within India’s rapidly expanding tech sector.

Why It Matters

This news is significant because it addresses a critical and escalating challenge facing the AI industry: the immense energy demands of large-scale data centers. As AI workloads continue to grow, the ability to efficiently manage power consumption will become increasingly important. C2i's approach, originating from India, represents a potentially disruptive force in the global hardware landscape, particularly given the projected exponential growth in AI infrastructure. For professionals in data center operations, AI, and semiconductor design, this represents a crucial technology with tangible implications for cost, performance, and sustainability. Moreover, it showcases India's growing capabilities in semiconductor design and manufacturing – a sector traditionally dominated by Western firms.

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