As AI data centers increasingly face power constraints, Indian startup C2i Semiconductors is stepping up with innovative solutions. Recognizing the crucial role of energy efficiency, Peak XV Partners has invested in C2i, which is developing system-level power solutions to minimize energy loss and enhance AI infrastructure economics. The startup recently secured $15 million in a Series A funding round led by Peak XV Partners, alongside Yali Deeptech and TDK Ventures, bringing its total funding to $19 million.
With the global demand for data center energy skyrocketing, data centers are projected to nearly triple their electricity consumption by 2035, according to a December 2025 BloombergNEF report. Furthermore, Goldman Sachs Research anticipates a 175% increase in power demand by 2030 compared to 2023, equivalent to adding another top-10 power-consuming nation. The key challenge lies in efficiently converting high-voltage power within data centers, a process currently resulting in 15% to 20% energy wastage, as explained by C2i's co-founder and CTO, Preetam Tadeparthy.
C2i, founded in 2024 by a team of former Texas Instruments power executives, including Ram Anant, Vikram Gakhar, Preetam Tadeparthy, and Dattatreya Suryanarayana, is revolutionizing power delivery with a plug-and-play 'grid-to-GPU' system. This approach integrates power conversion, control, and packaging, potentially reducing end-to-end energy losses by about 10%, which translates to significant savings in cooling costs and improved GPU utilization.
For Peak XV Partners, the appeal of C2i lies in the potential to significantly lower energy costs, a critical factor in the ongoing expense of data centers after initial investments in servers and facilities. Rajan Anandan, managing director of Peak XV Partners, highlighted the substantial financial impact of reducing energy costs by even 10% to 30%.
C2i is poised for rapid validation, with its first silicon designs expected to return between April and June. The startup plans to test its solutions with data center operators and hyperscalers who have expressed interest. With a team of around 65 engineers and customer operations expanding to the U.S. and Taiwan, C2i is gearing up for early deployments.
While the power delivery domain is dominated by established players, C2i's comprehensive approach, which involves coordinating silicon, packaging, and system architecture, sets it apart. This ambitious strategy requires significant capital and time to prove effective in real-world environments.
Anandan emphasized the importance of execution, noting that all startups face risks related to technology, market, and team dynamics. The next six months will be crucial for C2i, as silicon validation and customer feedback will test its innovative solutions.
India's semiconductor design ecosystem has matured, with a growing pool of engineering talent and government incentives reducing the cost and risk of developing competitive semiconductor products. This evolution positions Indian startups like C2i to potentially make a significant impact on the global stage. As C2i begins validating its solutions, the coming months will reveal whether these conditions can lead to a globally competitive product.