TL;DR
Venture investors surveyed remain broadly optimistic about climate tech heading into 2026, with investment levels holding roughly steady year‑over‑year. Many respondents said data centers — and the electricity they consume — will continue to shape funding and technology priorities, boosting interest in generation, storage and grid solutions.
What happened
Investors polled by TechCrunch painted a picture of resilience for climate and clean‑energy investing as 2025 closed, with venture activity roughly flat versus 2024 according to CTVC data. Despite political headwinds and shifting policy ambitions in the U.S. and Europe, backers pointed to falling costs for wind, solar and batteries and the persistent pressure of climate change as reasons for continued investment. A dominant thread in conversations was data centers: many investors expect them to remain a major demand driver for electricity in 2026, prompting interest in on‑site and off‑site power, resilience measures and efforts to decouple from constrained grids. That demand has supported growth across technologies including grid‑scale batteries, alternative battery chemistries, enhanced geothermal and emerging nuclear firms — some of which have raised sizable private rounds and are being discussed as potential public candidates next year.
Why it matters
- Data center growth is reshaping where and how electricity is supplied, altering investment demand across generation and storage.
- Falling costs for renewables and batteries make low‑carbon generation more competitive, expanding viable commercial opportunities.
- Grid resilience and efforts to decouple large loads from constrained systems could speed adoption of distributed and behind‑the‑meter solutions.
- Potential public exits for nuclear and geothermal startups could unlock new capital and visibility for those sectors.
Key facts
- CTVC data showed venture bets in climate tech were essentially flat in 2025 relative to 2024.
- Investors surveyed were nearly unanimous that data centers will remain central to energy conversations in 2026.
- Nuclear startups announced funding rounds totaling over $1 billion in recent weeks, drawing attention to public‑market paths.
- Grid‑scale battery deployments set records in 2025, and alternative chemistries such as sodium‑ion and zinc are entering the market.
- Enhanced geothermal is cited by several investors as poised to scale in 2026, with Fervo named frequently after a $462 million raise.
- Some investors expect data centers to shift focus from simply securing power to emphasizing resilience and grid decoupling.
- Investors highlighted 'reindustrialization' needs: rebuilding supply chains and deploying robotics, batteries and power electronics.
- Observers flagged software and hardware that speed interconnection and grid execution as under‑appreciated, practical winners.
What to watch next
- Whether data centers accelerate plans to decouple from local grids in favor of on‑site or contracted zero‑carbon power.
- Public‑market activity for nuclear and geothermal firms—Fervo was the company most often cited as a potential 2026 candidate.
- Growth in alternative battery chemistries (sodium‑ion, zinc) and business‑model innovations for energy storage deployment.
- Not confirmed in the source: a definitive timing or certainty that an AI/data‑center bubble will burst in 2026 and how broadly it would affect infrastructure spending.
Quick glossary
- Data center: A facility that houses computing infrastructure such as servers and networking equipment; large deployments consume significant amounts of electricity.
- Grid‑scale battery: Large battery installations connected to the electrical grid used to provide storage, balancing, and peak‑shaving services.
- Enhanced geothermal: Techniques and systems that expand the ability to access and use heat from the Earth at commercially useful scales for electricity generation.
- Decoupling from the grid: Strategies by which large electricity consumers reduce reliance on the public grid through on‑site generation, storage, or long‑term contracts.
- SPAC: Special Purpose Acquisition Company — a shell company that raises money via an IPO to acquire a private company, providing an alternative route to public markets.
Reader FAQ
Will climate tech investment collapse in 2026?
Not confirmed in the source: investors surveyed said venture activity remained essentially flat in 2025 and they expressed continued optimism for 2026.
Are data centers the main force driving energy investment?
Investors in the survey said data centers are a dominant demand driver and will continue to influence investment priorities in 2026.
Which startups are likely to go public in 2026?
Several investors mentioned nuclear or geothermal firms as potential public candidates, with Fervo cited most often; a public listing is not confirmed in the source.
Will AI‑driven demand hurt energy infrastructure plans?
Some investors cautioned a bubble could occur, but others said infrastructure spending for 2026 is largely already budgeted and likely to proceed.
This was supposed to be the year that climate tech died. President Donald Trump and the Republican Party have done their best to dismantle the Biden administration’s hallmark industrial and…
Sources
- 12 investors dish on what 2026 will bring for climate tech
- S&P Global Energy Horizons Top Trends 2026
- Tech Stocks Fuel Bull Run as Central Banks Weigh on …
- Global infrastructure outlook shows sharp 2026 rise
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