Dallas-Based WATTER Named a BloombergNEF Pioneers Finalist

WATTER's technology repurposes compute heat to warm water while reducing grid demand.

Published on Feb. 24, 2026

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Dallas-based startup WATTER has been named a 2026 BloombergNEF Pioneers finalist for its technology that uses wasted heat from compute devices to heat water in homes and businesses, while reducing demand on the power grid. WATTER emerged from stealth last year with $5 million in seed funding and is positioning itself to scale its distributed compute model.

Why it matters

Data centers are projected to become a major user of electricity, consuming 1,600 terawatt-hours by 2035—around 4.4% of projected global electricity demand. WATTER's technology aims to address the growing strain that data centers are placing on power grids, water systems, and materials supply chains.

The details

WATTER was selected by BloombergNEF in the category of 'Technologies for Sustainable, Scalable Data Center Infrastructure.' BloombergNEF noted that WATTER and the other finalists in this category 'focus on improving efficiencies in cooling and power for data centers, alongside ways to make data centers better equipped to respond to grid constraints.'

  • WATTER emerged from stealth with $5 million in seed funding in March 2025.
  • BloombergNEF named WATTER as one of 29 Pioneers finalists in February 2026.
  • Winners of the 2026 BNEF Pioneers competition will be announced in mid-April 2026.

The players

WATTER

A Dallas startup whose high-tech water heaters use wasted heat from compute devices to heat water in homes and businesses, while reducing demand on the grid.

James Hancock

Co-Founder and CEO of WATTER.

Hunt Innovative Technologies

A subsidiary of Dallas-based Hunt Energy, from which WATTER spun out.

BloombergNEF

A strategic research service within Bloomberg LP that runs the BNEF Pioneers competition to identify and celebrate 'standout innovations' that could play an important role in the energy transition.

BASE Power

An Austin-based company selected as a 2026 BNEF Pioneers finalist in the category 'Flattening the duck curve.'

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What’s next

Winners of the 2026 BNEF Pioneers competition will be announced in mid-April 2026.

The takeaway

WATTER's technology, which repurposes compute heat to warm water while reducing grid demand, has been recognized as a standout innovation that could play an important role in addressing the growing strain that data centers are placing on power grids and other infrastructure.