GridCARE, a developer of grid-management software for the artificial intelligence industry, announced it has raised $64 million in a Series A funding round. The investment highlights a growing shift in the tech sector where energy availability, rather than raw computing power, is increasingly seen as a major obstacle to AI scaling.
The oversubscribed round was led by Sutter Hill Ventures and prominent venture capitalist John Doerr. National Grid Partners, the investment arm of utility giant National Grid, also participated, signaling deepening ties between the startup and traditional power providers.
GridCARE Expands Power Management Platform
GridCARE said the new funding will help expand its “Power Acceleration” platform, which is designed to help data centers and industrial facilities gain faster access to electricity from existing power grids. The company’s Energize software uses physics-based modeling to identify unused or underutilized grid capacity that can support new energy demand without waiting for major infrastructure projects.
The company said its technology is focused on reducing delays that often slow down large-scale power connections for data centers and industrial projects. According to GridCARE, many AI infrastructure projects currently face long waiting periods before they can secure reliable electricity access.
“A year ago, few people were talking about power as a bottleneck for AI; today, it’s the rate-limiting step for the entire industry,” said Vic Miller, managing director at Sutter Hill Ventures.
Rising Energy Demand From AI Data Centers
The funding comes as demand for electricity continues to increase across the technology sector. The rapid growth of generative AI systems and large language models has led to increased data center development, placing additional pressure on power grids in the United States and other regions.
GridCARE cited Stanford University data showing that average grid utilization is currently around 30%, suggesting that significant unused capacity may already exist within current infrastructure systems. The company believes software can help utilities and businesses make better use of those resources before building entirely new transmission systems.
Chief Executive Officer Amit Narayan said long timelines for grid connections have become a major challenge for companies building new AI facilities. According to the company, some projects may wait between six and ten years for new power connections.
Partnership With Utility Providers
National Grid Partners’ participation in the funding round reflects growing cooperation between technology firms and traditional utility companies. Steve Smith, president of National Grid Partners, said unlocking existing grid capacity could provide a faster and lower-cost solution for increasing available power.
GridCARE previously raised a $14 million in seed funding in May 2025. The company said the latest financing represents a significant increase from its previous valuation, though financial details were not disclosed.
The company also pointed to ongoing work with Portland General Electric in Hillsboro, Oregon, where its platform helped identify a pathway to support more than 400 megawatts of additional capacity for future data center development.
