The rise of sustainable tech — opportunities, challenges & the role of AI

Artificial intelligence (AI) is evolving at breakneck speed and quantum computing is close behind, pushing demand for data centres, supercomputers and other energy‑intensive infrastructure to new heights. As these AI Growth Zones take shape across the UK and beyond, the pressure to build technology that’s genuinely sustainable has never been greater.

From the rapid rise of green tech to funding challenges holding innovators back, the realities of high‑energy AI models and the regulatory and intellectual property (IP) hurdles facing the sector, Colin Bell and Ruth Hargreaves sat down to discuss the key opportunities and considerations shaping the future of sustainable AI and quantum‑powered technology.

A market accelerating at pace

Green tech is experiencing powerful growth, driven by regulation, consumer behaviour and investor interest and all underpinned by rapid technological advancement, particularly in AI.

Key indicators of this rise include:

• A projected 23.1% compound annual growth rate between 2025 and 2030.
• An expected global market value nearing $80bn.
• In the UK, green tech growth has tracked up to three times faster than the wider economy over the past three years.

These figures highlight both the immediate opportunities for sustainable tech businesses and the potential for significant long‑term impact.

Funding — the sector’s most persistent challenge

Despite booming demand, many sustainable tech companies struggle to access the funding necessary to innovate and scale. These businesses often rely on early and continuous investment to support research, development and commercialisation — yet finding the right funding at the right time remains a common obstacle.

A range of funding routes is available, including:

1. Government & tax‑based support

• UK government green funding initiatives.
• British Business Bank programmes.
• R&D tax credits for qualifying innovation spend.
• Patent Box relief for IP‑rich companies.
   

2. Traditional funding

• Debt financing, from invoice discounting to overdraft facilities.
   

3. Equity investment

• Angel investment at early, higher‑risk stages.
• Institutional investors for more established businesses.
• SEIS, EIS and VCT schemes to incentivise early‑stage investment.

Businesses must understand not only what funding they need but also who they’re accepting it from. That includes reviewing an investor’s track record, cultural alignment and available capital.

Investor & self‑due diligence

While investors will inevitably conduct rigorous due diligence, tech businesses must also scrutinise their own readiness. This starts with robust ESG metrics like carbon reduction per unit sold and extends to independently verified certifications. 

These include:

• B Corp.
• International sustainability standards.

These credentials enhance credibility and investor appeal.

Businesses must also ensure that:

• Their technology is adaptable, cross‑sector and scalable.
• Their IP portfolio is clear and protected.
• They own all generated rights.
• Contracts with partners and customers are watertight.
• They comply with sector‑relevant regulations, including emerging AI regulatory frameworks in the UK and EU.

Strong compliance and clear risk management are critical components of investment‑readiness.

Can AI businesses be sustainable?

Although AI and quantum computing are inherently high‑energy technologies, there are several mechanisms that enable these businesses to operate sustainably.

1. Reducing energy consumption

• Newer AI models are being optimised to run on reduced systems.
• Large language models increasingly convert data into model weights and patterns, lowering storage and energy demands.
   

2. Offsetting carbon use

Companies can offset their environmental impact through:

• Carbon‑offset programmes (e.g. tree planting).
• Supporting green‑focused organisations.
   

3. Using sustainable energy & capturing waste heat

• Procuring renewable energy directly from the grid.
• Repurposing excess heat from data centres — for example, heating swimming pools or other facilities.

These measures demonstrate that AI and high‑compute companies can be part of the sustainability solution, not just a source of the problem. Moreover, AI systems and quantum computing may themselves drive innovation towards a more sustainable future.

The broader challenges facing AI businesses

While AI investment is strong and growing, businesses in this space face several emerging risks:

1. A potential market bubble

Although there are no immediate signs of slowdown, the rapid pace of investment raises questions about long‑term stability.
 

2. Increasing regulation

AI organisations must navigate:

• UK regulatory frameworks.
• The evolving EU AI Act.

Governments face a delicate balance between encouraging innovation and protecting consumers and rights‑holders.
 

3. IP risks

AI businesses must address three major IP challenges:

1. Training data — training AI models typically involves using copyright‑protected materials that may constitute infringement unless appropriately licensed. Courts are increasingly signalling that unlicensed training on copyrighted data isn’t permissible.
   • Case law varies:
     • UK courts (Getty Images vs Stability AI) held that model weights weren’t infringing because they didn’t store reproductions.
     • A German case found infringement where the model memorised and reproduced full copyrighted text.
2. Outputs — if AI outputs substantially resemble existing copyrighted works, businesses face further IP exposure.
3. Ownership of AI‑generated material — questions remain about:
   • Whether AI‑created inventions can be patented.
   • Who owns AI‑generated content: the user prompting it or the developer building it or no-one at all?
   • Whether AI inventions are patentable, with a recent Supreme Court decision indicating that computer-based inventions including AI aren’t excluded from patent protection, provided that the applicant can show a technical contribution which may include utilisation of hardware.

The ‘Future of Tech’ conference 

Emerging technology and sustainability are two of the defining conversations of our time — and they’re becoming more urgent by the day. 

We’re putting them centre stage at the Future of Tech conference on 17 March 2026, where speakers from Microsoft, Kao Data, IBM, the STFC Hartree Centre and more will explore how AI, data, quantum and Tech for Good are shaping the environmental impact of technology and accelerating a more sustainable future.

Talk to us

With opportunities and challenges evolving at pace, businesses in sustainable tech and AI are at a critical point. As a certified B Corp, we’re committed to driving responsible, transparent and genuinely sustainable business practices — and we bring that same ethos to the organisations that we support.

Our technology team combines deep expertise in emerging tech, AI governance, sustainability frameworks and IP protection. We help businesses to navigate complex regulation, secure investment, protect their innovations and build models that align with both commercial goals and environmental responsibility.

Talk to our team by calling 0333 004 4488, emailing hello@brabners.com or completing our contact form below.