Venture capital in climate technology surged by 55% in the first half of 2026, driven by a focus on data centres and clean power, while funding for fuels cooled amid policy delays.
Climate tech venture capital climbed sharply in the first half of 2026, reaching $26.1 billion, according to CTVC’s latest investment and innovation report, a 55% increase on the same period a year earlier. The headline number, however, conceals a market that is becoming more concentrated, with a smaller number of much larger rounds doing most of the work.
Low-carbon data centres were the standout theme. CTVC said they accounted for 34% of all climate tech investment in H1, led by DayOne’s $4.5 billion round and NScale’s $2 billion raise. The trend reflects the scramble among developers and investors to secure power, land and grid access for the computing boom, particularly as AI infrastructure becomes one of the clearest sources of demand for climate-linked capital.
The report also points to a stronger appetite for clean firm power. CTVC said energy-related IPOs and SPACs outperformed expectations, with Fervo and X-Energy setting records for public-market fundraising in the category. That matters for industrial decarbonisation because it suggests that technologies once confined to long-horizon venture bets are increasingly being treated as infrastructure plays with credible routes to scale.
At the same time, the market has cooled for carbon and low-carbon fuels. CTVC said carbon investment fell 61% to its weakest half since 2020, while low-carbon fuels dropped 56%, reflecting softer US subsidy support and a wait-and-see stance among European buyers ahead of policy reviews due in 2027. The shift suggests capital is being pulled towards sectors with clearer near-term demand and more direct monetisation.
Another notable feature is the rise of later-stage financing. Series C funding surged nearly fourfold to $10.5 billion, CTVC said, accounting for 40% of all investment, up from 16% a year earlier. The category was heavily skewed towards a handful of large data centre rounds, but the broader message is that climate tech is starting to resemble project finance as much as venture capital in some subsectors.
Beyond compute and power, CTVC said physical AI and climate monitoring tools are drawing more money. Earth observation funding tripled as investors backed real-time geospatial data and risk analytics, while robotics training and simulation startups also attracted unusually large sums. That fits with a wider pattern in which adaptation, resilience and industrial data are becoming more investable alongside mitigation technologies.
The report’s data sits alongside other signs that climate capital is moving towards scale-up deployment rather than pure early-stage experimentation. In June, Axios reported that Gigascale Capital, founded by former Meta CTO Mike Schroepfer, launched a $250 million fund aimed at backing companies rebuilding the physical economy for climate impact. Around the same time, Axios also reported that Microsoft, Google, Amazon and Meta teamed up with Elemental Impact on a programme using data centres as testbeds for climate-friendly technologies, with pilot investments planned through 2027.
For industrial decarbonisation professionals, the message is clear: capital is still flowing, but it is becoming more selective, more infrastructure-like and more tightly linked to immediate demand from power-hungry computing, grid constraints and physical risk.
- https://www.ctvc.co/h126-climate-tech-funding-up-55-to-26bn-thanks-to-data-centers/ – Please view link – unable to able to access data
- https://www.ctvc.co/h126-climate-tech-funding-up-55-to-26bn-thanks-to-data-centers/ – CTVC’s H1 2026 Climate Tech Investment & Innovation Report reveals that climate tech venture capital reached $26.1 billion in the first half of 2026, marking a 55% year-on-year increase. Low-carbon data centres emerged as significant contributors, accounting for 34% of the investment, with major deals like DayOne’s $4.5 billion and NScale’s $2 billion. The report also highlights a surge in clean firm power IPOs, a decline in carbon and low-carbon fuel investments, and a notable rise in Series C funding, which quadrupled to $10.5 billion.
- https://www.axios.com/2026/06/01/gigascale-capital-schroepfer-250-million-fund – Gigascale Capital, founded by former Meta CTO Mike Schroepfer, has launched a $250 million fund aimed at supporting startups focused on rebuilding the physical economy for climate impact. This initiative reflects a strategic shift from Schroepfer’s previous early-stage focus, now encompassing support for companies from initial funding through scaled deployment, driven by the belief that climate-positive technologies succeed when they outperform existing solutions.
- https://www.axios.com/2026/05/27/tech-giants-data-center-climate-initiative – Major tech companies, including Microsoft, Google, Amazon, and Meta, have partnered with nonprofit investor Elemental Impact to launch an initiative using data centres as testbeds for climate-friendly technologies. The initiative aims to channel innovation towards sustainability, with Elemental planning to invest between $500,000 and $5 million in up to 10 startups through 2027 to support pilot projects focused on clean technology within data centres.
- https://www.f4.fund/investors/climate – F4 Fund tracks 475 venture capital firms actively investing in climate and clean energy sectors, with check sizes ranging from $5,000 to $5 billion. As of July 2026, 91% of these firms lead or co-lead rounds, indicating a strong commitment to funding climate-focused innovations. The median check size is $2.3 million, reflecting substantial investment in the sector.
- https://www.f4.fund/investors/climate/seed – F4 Fund identifies 451 venture capital firms investing in climate and clean energy at the Seed stage, with check sizes ranging from $5,000 to $5 billion. As of July 2026, 92% of these firms lead or co-lead rounds, demonstrating a robust interest in early-stage climate ventures. The median check size is $2.1 million, supporting the growth of nascent companies in the sector.
- https://www.f4.fund/investors/climate/semiconductors – F4 Fund monitors 90 venture capital firms investing in both climate and clean energy sectors and semiconductors and hardware, with check sizes ranging from $5,000 to $5 billion. As of July 2026, 92% of these firms lead or co-lead rounds, indicating a significant focus on integrating climate solutions with technological advancements. The median check size is $2.8 million, facilitating substantial investments in this niche.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The article was published on July 13, 2026, which is recent. The data it presents aligns with other recent reports, such as the ‘2026 Climate Dry Powder & New Funds Report’ from April 22, 2026, indicating that the information is current. ([ctvc.co](https://www.ctvc.co/new-the-2026-climate-dry-powder-new-funds-report/?utm_source=openai))
Quotes check
Score:
8
Notes:
The article includes specific figures and company names, such as DayOne’s $4.5 billion Series C funding and NScale’s $2 billion raise. These figures are consistent with other recent reports, suggesting accuracy. ([ctvc.co](https://www.ctvc.co/new-the-2026-climate-dry-powder-new-funds-report/?utm_source=openai)) However, the article does not provide direct quotes from individuals, making independent verification challenging.
Source reliability
Score:
7
Notes:
CTVC is a newsletter powered by Currence, a market intelligence platform. While it appears to be a reputable source within the climate tech sector, it is not a traditional news organisation. The lack of direct quotes and reliance on internal reports may limit the objectivity of the information presented.
Plausibility check
Score:
8
Notes:
The claims about the surge in climate tech funding, particularly in low-carbon data centres, are plausible and align with industry trends. However, the article’s focus on specific companies and deals without independent verification raises some concerns about potential bias or selective reporting.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents recent data on climate tech funding, particularly in low-carbon data centres, which aligns with industry trends. However, the reliance on CTVC’s internal report without independent verification, the lack of direct quotes, and potential biases in reporting raise significant concerns about the accuracy and objectivity of the information. Given these issues, the content cannot be fully verified, and publishing it carries risks.
