As 2025 comes to a close, many had predicted that it would be the year that climate tech would suffer a major setback. With the efforts of President Donald Trump and the Republican Party to dismantle climate policies, and even the European Union easing off aggressive goals, it seemed like a challenging year for clean energy investing. However, despite these challenges, the climate tech sector has shown remarkable resilience.
According to CTVC, venture bets in the climate tech sector remained stable compared to the previous year, defying the expectations of a decline. One of the key factors contributing to this resilience is the continued threat of climate change. Additionally, many climate technologies have become more cost-effective or superior to fossil fuel alternatives, making them attractive investment opportunities.
The significant cost reductions in solar, wind, and battery technologies have propelled the growth of climate tech. While not every new technology will experience the same success, the progress made so far demonstrates that cleaner and cheaper alternatives to fossil fuels are viable and in demand.
One area that has continued to dominate the climate tech conversation is data centers. The increasing demand for electricity from data centers has driven interest in clean energy solutions. Investors predict that data centers will remain at the forefront of the conversation in 2026, with a focus on resilience and decoupling from the grid to address energy challenges.
In terms of power generation, investors have seen opportunities in geothermal, nuclear, solar, and batteries. Zero-carbon generation is becoming more cost-effective, and the demand for grid-scale and distributed batteries is accelerating cost reductions. While there are concerns about a potential AI bubble bursting, investors remain optimistic about the future of infrastructure investments.
The quest for power continues to drive innovation in energy-related startups, particularly in nuclear fission. Despite the growing interest in nuclear power, solar and batteries remain popular choices for tech companies and data center developers due to their affordability and rapid deployment capabilities. Grid-scale batteries, in particular, have seen significant deployments in 2025, with alternative battery chemistries like sodium-ion and zinc expected to further drive adoption.
Looking ahead to 2026, investors anticipate growth in new battery chemistries and business models. Geothermal energy is also expected to play a larger role in meeting electricity demands, with enhanced geothermal technology ready for deployment at larger scales. While AI remains a driving force behind energy demand, companies that expand beyond data centers are likely to see the most success in the evolving climate tech landscape. What should we expect in 2026?
In 2026, we can expect a shift towards a more diversified energy landscape beyond data centers. While data centers have been a significant demand driver for energy, other sectors and technologies are emerging as key players in the market. This includes a focus on critical minerals, robotics, and software for managing the electrical grid. Investors are looking towards a range of technologies that can contribute to a more sustainable and efficient energy system.
One key trend to watch is the increasing focus on resiliency and adaptation in the energy sector. Technologies that enhance the reliability and efficiency of the grid, such as robots for burying electrical transmission lines, are gaining attention. Additionally, advancements in electric vehicle (EV) trucking, particularly with the release of the Tesla Semi, are expected to transform the transportation industry.
Artificial intelligence (AI) is also expected to play a significant role in the transformation of the energy sector in 2026. The integration of AI with physical infrastructure and smart hardware will lead to innovations across industries, from manufacturing to life sciences to food systems. AI-powered solutions will drive efficiency and sustainability in energy production and distribution.
Investors are also keeping an eye on technologies that have been previously overlooked or written off. Breakthroughs in these areas could lead to significant advancements in the energy sector. The intersection of AI, robotics, and physical infrastructure is expected to drive innovation and unlock new opportunities for growth and sustainability.
Overall, while data centers remain a critical part of the energy market, the focus in 2026 is shifting towards a more diverse and innovative landscape. Emerging technologies and trends are driving the evolution of the energy sector, offering new opportunities for investment and growth.
As we look ahead to 2026, there are several key trends and technologies that we can expect to shape the clean energy landscape. Data centers will continue to drive record power demand as AI workloads scale up. Despite concerns of overbuilding, we are unlikely to see much stranded capacity as the cost of compute continues to decrease, leading to new applications for this power. Hyperscalers will focus on differentiating between clean power sources, such as firm versus intermittent, location, and additionality, rather than just headline megawatt-hours. This shift is already evident in bespoke offtake deals and on-site supply strategies.
In terms of power generation, fission and geothermal energy will likely see continued momentum with support from both private capital and federal backing. Fusion energy may attract increased federal support as geopolitical competition intensifies, although large-scale deployment is still several years away. Alternatives to natural gas peaker plants, such as new turbines and modular designs with integrated carbon capture, will gain traction as grids manage new peak demands driven by AI workloads.
Solar and battery build-out will continue to be strong due to their economic viability. For dispatchable, 24/7 baseload power, we can expect to see growth in fission, geothermal, and peaker alternatives like modular gas turbines with integrated carbon capture. There is also a grid-edge opportunity to watch – large facilities procuring dedicated baseload on-site to reduce grid congestion.
In terms of IPOs in 2026, companies focused on fission or geothermal energy are the most likely candidates. These companies have raised significant capital and built strong partnerships with hyperscalers and utilities, positioning them for potential public market offerings.
Technologies that will be ready for larger-scale deployment in 2026 include energy storage systems for residential, commercial, industrial, and grid-scale applications. Additionally, industrial heat pumps and thermal storage systems are becoming more cost-effective than traditional gas boilers in many regions. The growth of critical minerals and battery materials projects, supported by federal initiatives to enhance supply chain security, will also be a key trend to watch.
One technology trend to pay more attention to is the integration of software and AI into physical infrastructure. Real-time factory intelligence, AI-based design tools, and grid management software will play a crucial role in improving energy efficiency, manufacturing yields, and grid operations. Companies reimagining foundational technologies with a clean-sheet approach and dual-use climate technologies that strengthen domestic supply chains will also be significant areas of focus.
As we move into 2026, the clean energy sector is poised for continued growth and innovation, driven by advancements in technology, shifting market dynamics, and increasing support from both the public and private sectors. It will be exciting to see how these trends unfold and shape the future of clean energy. What should we expect in 2026?
In 2026, the energy conversation surrounding data centers is likely to focus more on sustainability and efficiency. With increasing demands for data storage and processing power, the need for energy-efficient solutions will become even more crucial. Companies will be looking for ways to reduce their carbon footprint and minimize their energy consumption while maintaining high performance levels.
Where is the biggest opportunity to find or place power on the grid?
The biggest opportunity to place power on the grid lies in renewable energy sources such as solar, wind, and geothermal power. These sources provide clean and sustainable energy that can help reduce greenhouse gas emissions and combat climate change. Investing in renewable energy infrastructure and technologies will be key to ensuring a reliable and resilient power grid for the future.
Which climate tech or clean energy startup is most likely to IPO in 2026?
It’s difficult to predict which specific startup will IPO in 2026, as the market can be unpredictable. However, companies that focus on innovative clean energy solutions, such as advanced energy storage technologies or carbon capture and sequestration, are likely candidates for potential IPOs in the coming years.
Which technologies do you think will be ready to deploy at larger scales in 2026?
Technologies that will be ready to deploy at larger scales in 2026 include advanced energy storage systems, grid optimization software, and smart grid technologies. These innovations will help improve the efficiency and reliability of the power grid, making it more resilient to disruptions and able to accommodate the growing demand for clean energy sources.
What trend or technology should we be paying more attention to?
One trend that we should be paying more attention to is the development of carbon removal technologies. As the urgency of climate change becomes increasingly apparent, finding ways to remove carbon dioxide from the atmosphere and store it safely will be critical in mitigating its impact. Investing in innovative carbon removal technologies and supporting policies that promote their adoption will be essential in addressing the climate crisis.
In 2026, we can expect to see a continued acceleration in deal-making within the data center/hyperscaler space. This will involve structured power off-take agreements that combine behind-the-meter and utility-related infrastructure to optimize pricing and reliability. Additionally, there will be more activity at the federal, ISO/RTO, and state levels to hasten the deployment of energy assets while balancing tariff structures to prevent increased costs for consumers.
Mergers and acquisitions in technology optimization, including resources such as geothermal, nuclear, critical minerals, and downstream hardware and software products, will play a significant role in the digitalization, decarbonization, and distribution of energy supplies and load management. This area will be a focal point for venture capital investment in 2026.
While there may not be a downturn in data center and hyperscaler development, there will likely be a rationalization of development and an emphasis on implementing efficiency solutions to reduce capacity needs.
The biggest opportunity for power placement on the grid in 2026 lies in improving the grid itself. Grid modernization through digitalization, decarbonization, and decentralization will bring cost savings, optimize existing infrastructure, and better integrate distributed energy resources. The trend towards zero-carbon generation and the increasing demand for grid-scale and distributed batteries will continue to drive advancements in this area.
In terms of IPOs in 2026, Factorial appears to be a leading candidate, with plans to de-SPAC during the year. Companies with strong customer traction, clear cost and performance advantages, and rapidly scaling revenues will be well-positioned for public markets.
Technologies that are expected to deploy at larger scales in 2026 include energy storage, sustainable aviation fuel, critical minerals, and material manufacturing facilities across the energy supply chain. Investment in these areas will be significant, supported by manufacturing tax credits and attractive market opportunities.
To compete with China in manufacturing and innovation, financial innovation will be crucial. Global markets need to deploy trillions of dollars annually on climate-related technologies, and attracting public and private investors will require favorable risk-return balances across the climate capital stack.
Innovative financing solutions, such as risk sharing mechanisms and AI-driven cost reductions, will play a vital role in accelerating the scaling of climate technologies in 2026. The impact of AI on cost curves across various industries will also be a key trend to watch, as it has the potential to drive down production costs and foster innovation.
Overall, 2026 promises to be a year of significant advancements and opportunities in the energy and climate tech sectors. With continued investment, technological innovation, and policy support, we can expect to see substantial progress towards a more sustainable and efficient energy landscape. In 2026, the energy sector is poised for significant growth and innovation beyond just data centers. While data centers continue to be a demand driver, there are other opportunities in commercial and industrial sectors as well as front-of-the-meter applications. One key area of focus is the supply of critical metals, essential for both data centers and electric vehicle (EV) batteries.
The retirement of thermal and nuclear plants presents a significant opportunity for placing power on the grid. These retired sites already have high-capacity grid connections, making the deployment of new clean generation much faster. Reusing these interconnections can significantly reduce project timelines and costs. Next-generation nuclear reactors like Stellaria and geothermal energy from companies like Factor2 Energy can take advantage of these existing grid connections for rapid deployment.
Industrial sites, such as chemicals, steel, and refineries, with oversized grid connections, also present opportunities for expanding production and adding storage. Electrifying heavy industry quickly can be achieved by leveraging existing grid infrastructure.
In terms of clean energy startups, the battery recycling and circular critical materials subsector is one to watch closely. Recycling lithium, nickel, and cobalt for EV batteries can provide a lower-risk, domestic supply chain for the US.
In terms of technologies ready for deployment at larger scales in 2026, companies like Relectrify are scaling up their battery systems with innovative cell-level semiconductor circuitry. Grid-scale energy storage beyond lithium, driven by AI data centers and renewable growth, is also on the rise. Battery recycling and closed-loop supply chains with automakers are already scaling up, with companies like Ascend Elements leading the way.
Looking ahead, technologies like domestic metal refining by companies like Chemfinity and advancements in mining, extraction, and recycling of critical metals will play a crucial role in securing the metal supply chain for data centers and EVs. Copper, in particular, is essential for data centers and requires attention to ensure a stable supply chain.
Overall, the energy sector in 2026 is poised for continued growth and innovation, with a focus on leveraging existing infrastructure for rapid deployment of clean energy solutions and ensuring a secure and sustainable supply chain for critical metals. Technologies like geothermal energy and advanced battery systems will play a significant role in shaping the future of energy production and storage.
Geothermal heat loops have been touted as a sustainable and efficient source of energy, but their scalability has been hindered by high friction levels. This has slowed down the adoption and expansion of single-site geothermal heat loops, preventing them from scaling faster than they currently are. One of the main challenges faced by these systems is the high levels of friction within the loop, which leads to inefficiencies and increased energy consumption. Addressing this issue is crucial for the widespread adoption of geothermal heat loops as a viable renewable energy source.
One potential solution to improve the efficiency of geothermal heat loops is the implementation of thermal energy storage, also known as load shifting. By storing excess thermal energy generated during off-peak hours, industrial applications can reduce their reliance on grid electricity during peak demand periods. This not only helps to balance energy loads more effectively but also reduces overall energy costs for industrial operations.
Looking ahead to the future of energy technology, robotics is poised to revolutionize labor-intensive industries in the coming years. From industrial and agricultural operations to waste management and manufacturing, robots are expected to play a significant role in increasing efficiency and reducing operational costs. By automating repetitive tasks and streamlining processes, robotics can drive innovation and transformation across various sectors.
Another key trend to watch in the energy sector is the push towards logistics and manufacturing efficiency. Electrification, efficiency improvements, on-shoring of production, and the integration of AI technologies are driving emissions reductions in these sectors. By providing long-term cost certainty and lower costs compared to conventional fuels, businesses can accelerate the transition towards more sustainable energy practices.
Resilience technology is also set to gain momentum in the face of climate change and extreme weather events. As insurance costs continue to rise due to climate-related risks, businesses and individuals are increasingly investing in resilience measures to protect their assets and operations. This includes upgrading aging infrastructure, transitioning to distributed energy resources, and implementing decentralized resource paradigms to enhance resilience and adaptability.
Matt Rogers, founder at Incite and Mill
Data centers have been a focal point in energy discussions in recent years, and their role in powering AI innovation is set to grow in 2026. Local governments are expected to challenge hyperscalers to deliver solutions that align with community needs and promote municipal partnerships for more efficient construction. Energy affordability will be a key concern, driving the need for cost-effective solutions and strategies to combat rising energy costs.
One of the biggest opportunities for power placement on the grid lies in decentralized infrastructure solutions. By leveraging technologies such as rooftop solar, energy storage, and distributed energy resources, households can contribute to grid stability and reduce the strain on centralized power plants. This shift towards decentralized energy generation can help accommodate the increased energy demands from data center AI operations.
In 2026, the deployment of technologies like food recyclers and robotics is expected to expand on a larger scale. Partnerships will play a crucial role in promoting the adoption of sustainable practices, such as returning food waste back into the food system and utilizing functional robots for task-specific operations. The focus will be on affordability, efficiency, and technological advancements to drive innovation and sustainability.
Looking towards the future, the convergence of AI and physical infrastructure will drive innovation and transformation across industries. By combining AI technologies with smart hardware and infrastructure, businesses can enhance efficiency, improve processes, and deliver solutions that benefit both consumers and communities. The integration of AI into everyday life, from smartphones to waste facilities, will shape the future of technology and sustainability.
Kyle Teamey, managing partner at RA Capital Planetary Health
In the realm of data centers and energy consumption, the dominance of data centers is expected to continue in 2026. The level of investment and attention towards AI innovation is unprecedented, setting the stage for continued growth and expansion in the sector. While concerns about a potential bubble burst exist, the momentum and budgetary allocations for 2026 suggest that the trajectory is set for further development.
The biggest opportunity for power placement on the grid lies in addressing the exponential growth of data demands with linear power scaling. This disparity creates a significant challenge for the physical world to catch up with the energy demands of data centers. Opportunities for improvement exist across power generation, storage, transmission, distribution, and grid operations, presenting a diverse range of options for enhancing energy efficiency and sustainability.
Overall, the energy sector is poised for significant advancements and innovations in the coming years. By addressing challenges such as high friction in geothermal heat loops, leveraging thermal energy storage for load shifting, and embracing robotics and AI technologies, industries can drive efficiency, reduce costs, and promote sustainability in energy production and consumption.
In considering the future of climate tech and clean energy startups, it is reasonable to anticipate a surge in IPOs in the year 2026. One area that is likely to see significant growth in public companies is power generation. With a focus on sustainability and reducing carbon emissions, various sectors within power generation are poised for expansion.
Nuclear energy companies, in particular, are gaining traction and could potentially lead the way in IPOs. The renewed interest in nuclear power as a clean energy source has sparked innovation and investment in nuclear fission technology. As these companies demonstrate success in project development and implementation, the opportunity for going public becomes more appealing.
Additionally, geothermal energy is expected to be a prominent player in the IPO market in 2026. The harnessing of geothermal resources for power generation offers a renewable and reliable energy source that is gaining attention in the clean energy sector. Companies specializing in geothermal technology may find themselves ready to deploy their solutions on a larger scale and attract investors through public offerings.
While there may not be any groundbreaking technologies on the horizon, the focus in the clean energy industry is on scaling existing technologies for maximum impact. Rapid scalability presents a significant opportunity for growth and investment in the clean energy sector. By capitalizing on the regionalization trend and the increasing demand for sustainable solutions, clean energy startups have the potential to make a substantial impact in the market.
In conclusion, the landscape for climate tech and clean energy startups in 2026 is ripe for growth and innovation. With a focus on power generation, nuclear energy, and geothermal technology, these sectors are poised for expansion and potential IPOs. By leveraging existing technologies and scaling operations efficiently, clean energy startups can seize the opportunity to make a significant contribution to a more sustainable future. The world is facing a global pandemic that has affected the lives of billions of people. The coronavirus, also known as COVID-19, has spread rapidly across the globe, causing widespread illness, death, and economic disruption. As countries struggle to contain the virus and mitigate its impact, scientists and researchers are working tirelessly to develop a vaccine that can help bring an end to the pandemic.
The development of a vaccine for COVID-19 is a complex and time-consuming process that involves multiple stages of testing and evaluation. The first step in the process is to identify the virus and understand how it infects human cells. Scientists have been studying the genetic makeup of the virus and how it interacts with the immune system in order to develop a vaccine that can effectively target and neutralize it.
Once the virus has been identified, researchers work to create a vaccine that can stimulate the immune system to produce antibodies that can recognize and attack the virus. This process involves testing different formulations of the vaccine to determine which one is most effective at generating a strong immune response. Researchers also need to ensure that the vaccine is safe and does not cause harmful side effects.
After a promising vaccine candidate has been identified, it moves on to clinical trials, where it is tested on human volunteers to determine its safety and efficacy. These trials are conducted in multiple phases, with each phase involving a larger number of participants and more rigorous testing. The goal of these trials is to determine whether the vaccine is safe, whether it produces an immune response, and whether it provides protection against the virus.
If a vaccine is found to be safe and effective in clinical trials, it can then be submitted for regulatory approval. Regulatory agencies such as the Food and Drug Administration (FDA) in the United States and the European Medicines Agency (EMA) in Europe review the data from the clinical trials and determine whether the vaccine meets the necessary safety and efficacy standards. If the vaccine is approved, it can be manufactured and distributed to the public.
The development of a vaccine for COVID-19 is a critical step in bringing an end to the pandemic and returning to a sense of normalcy. Vaccines have played a crucial role in controlling and eradicating infectious diseases throughout history, and researchers are hopeful that a vaccine for COVID-19 will be able to do the same. However, the process of developing a vaccine is complex and time-consuming, and it may be some time before a vaccine is widely available.
In the meantime, it is important for individuals to continue following public health guidelines to prevent the spread of the virus. This includes wearing masks, practicing social distancing, washing hands frequently, and avoiding large gatherings. By working together and following these guidelines, we can help slow the spread of the virus and protect ourselves and our communities until a vaccine is available.
