$26 billion in venture capital in climate tech in the first half of 2026, but focused on data center energy while carbon stalls.
New York's Climate Week in September 2026 was largely played out around a single topic. UN Secretary-General António Guterres summed up the ambivalence in one sentence: AI could help solve these challenges, or make them worse.
The figures reflect this shift. Venture capital invested in climate technologies reached $26 billion in the first half of 2026, up about 55% year-on-year, but the nature of the distribution has changed: the money is going to power data centers — nuclear, geothermal, wind, solar — while carbon management and low-carbon fuels are seeing their financing collapse.
The optimistic camp points to the acceleration of research on catalysts and the influx of capital towards carbon-free energy. Skeptics contrast the documented rise in emissions from Google, Meta and Microsoft, caused by data centers, and point out that gas-fired power plants built today to absorb immediate demand will operate for decades. Simon Stiell, the UN's climate chief, has shifted the burden of proof to the industry: it is up to them to demonstrate that the benefits outweigh the rising costs.
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