Data centers are taking on water 🌊

Mar 5, 2026

Kaley Ubellacker

Happy Wednesday! If you’re new here, welcome to Necessary Nuggets, your one-stop pre-seed shop. We deliver updates from Necessary Ventures and helpful tidbits on our little corner of the world. Every edition is also on our blog.

Good Reads 📖

For the rushed reader …

AI’s compute demands are straining land-based power grids, and some companies are exploring data centers offshore as a possible solution.

  • According to Crunchbase, seed-stage investors are starting to focus on the intersection of AI and biosecurity, backing startups defending against weaponized biology.

  • As robotaxis roll out across cities, experts say self-driving car companies could learn from the early mistakes of military drones, where remote supervision posed serious safety risks.

For the less rushed reader …

Going with the flow

Datacenter construction projects are getting shelved left and right, and now they’re hitting the [ocean] floor. AI’s compute demands are straining land-based power grids, and some companies are exploring data centers offshore as a possible solution. While Elon Musk is looking into space for next-gen data centers, offshore wind developer Aikido plans to deploy a submerged, wind-powered data center off the coast of Norway. Its servers will be housed inside underwater pods connected directly to floating wind turbines. The approach could ease power constraints, reduce local opposition to noisy onshore facilities, and naturally cool servers using cold seawater. However, it introduces new engineering challenges tied to corrosion and ocean motion. The concept builds on earlier experiments like Microsoft’s underwater data center trial near Scotland, which showed promising reliability but was ultimately sidelined. Hopefully datacenters are ready to take on a different kind of current.

Gone viral

Antidotes are out, and algorithms are in. According to Crunchbase, seed-stage investors are starting to focus on the intersection of AI and biosecurity, backing startups defending against weaponized biology. Valthos recently raised $30 million to develop AI systems that identify biological threats and design countermeasures, with backing from OpenAI, Founders Fund, and Lux Capital. Shortly after that round, Red Queen Bio secured $15 million led by OpenAI to scale defenses for evolving biological risks. These sums are tiny compared to the $110 billion flowing into AI overall, but they highlight a nascent startup ecosystem tackling some of the most existential threats right now. It’s time to say good bye-o to bio threats.

Watch the pilot

It might be a good thing for robotaxis to take another crash course. As robotaxis roll out across cities, experts say self-driving car companies could learn from the early mistakes of military drones, where remote supervision posed serious safety risks. Axios shared some perspectives from Missy Cummings, a former Navy fighter pilot and autonomous vehicle researcher. She highlighted a few key challenges that impacted UAV operations and are now likely to impact robotaxi deployments: low-latency communication delays, confusing operator interfaces, overwhelming workloads, insufficient training, and poor contingency planning. Some of these issues are already impacting vehicles, like Waymo cars receiving outdated traffic-light data or autonomous shuttle buses suffering from mode confusion. Cummings argues that remote operators are a critical safety system, and improving their training, placement, and emergency protocols will be essential as autonomous vehicles scale. If remote operators’ days look anything like a typical wfh-er’s day, I see Cummings point.

Market Stirrings 🚩

Here's what the week looked like in pre-seed:

$27.3M

Total Amount Raised

Total Amount Raised

30

Total Funding Rounds

Total Funding Rounds

$1.6M

$1.6M

Average Dollars per Round

Average Dollars per Round

$8.0M-$16.0M

$8.0M-$16.0M

Estimated Valuation Range

Estimated Valuation Range

Data aggregated from proprietary research and Crunchbase; valuation estimate based on 10-20% ownership stake.

THE PRE-SEED PICTURE
Carta’s data reveals that 2025 post-money SAFE rounds were heavily concentrated in smaller checks, especially under $500K. The prevalence of post-money SAFEs declined as round size increased, dropping from over 1,100 rounds per bracket up to $2 million, to 600 rounds or fewer for larger raises.

healthtech

Validfor - Regulation relaxation.

Validfor raised $1.2 million led by DOMiNO Ventures. Validfor is building an AI platform that automates validation and regulatory compliance workflows for healthtech companies. 

fintech

Tools for the Commons - Zoning out in the best way.

Tools for the Commons raised $1.9 million including participation from 468 Capital, Coins, Grupo OSPA, and other investors. Tools for the Commons is creating blockchain-based digital infrastructure to power autonomous economic zones.

AI

The New Era of Shopping - Shop-AI-holics.

The New Era of Shopping raised $1.4 million led by Alliance DAO and Presto Ventures. Era is building an AI commerce platform that helps brands optimize their product catalogs for AI shopping agents.

JOBORTUNITIES

| VP of Finance | - Copper:
Rethinking the induction stove and making kitchen electrification more accessible than ever. Picture a fossil-free future, without sacrificing aesthetics.

| Full Stack Software Engineer | - OneImaging:
Envisioning the future of transportation beyond cars and into the realm of personal electric vehicles. Its first product, P1, is the ultimate tool for city navigation.

Outro🚪

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