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This was supposed to be the year that climate tech died<\/a>. <\/p>\n President Donald Trump and the Republican Party have done their best to dismantle<\/a> the Biden administration\u2019s hallmark industrial and climate policies. Even the European Union has begun to ease off<\/a> its most aggressive goals.<\/p>\n And yet, as the year closes the receipts provide a different view of climate and clean energy investing in the U.S. and Europe. Instead of tanking, venture bets in the sector remained essentially flat relative to 2024, according<\/a> to CTVC, far from the slide some had expected.<\/p>\n That resiliency is due in part to continued threat of climate change. Perhaps a bigger contributing factor is that many climate technologies have become either cheaper or better than the fossil fuel alternatives \u2014 or are on the cusp of being so.<\/p>\n The incredible cost reductions of solar, wind, and batteries continue to fill climate tech\u2019s sails. Not every new technology will follow the same path. But it does provide evidence that fossil fuels aren\u2019t invincible and ample opportunities to fund companies providing cleaner, cheaper replacements do exist.<\/p>\n Last year, I predicted that 2025 would be the year that climate tech learned to love AI<\/a> and its thirst for electricity, one that has largely borne out. It\u2019s not entirely surprising \u2014 for the climate tech world, cheap, clean energy is its cornerstone.<\/p>\n Interest in data centers has only increased in the last year. And investors TechCrunch surveyed were nearly unanimous in their agreement that data centers will remain at the center of the conversation in 2026.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> \u201cThey are creating their own financial ecosystem, and there is enough actual momentum in current AI efforts that I don\u2019t see the hyperscalers\u00a0pulling back in 2026,\u201d Tom Chi<\/a>, founding partner at At One Ventures<\/a>, told TechCrunch.<\/p>\n \u201cI\u2019m still hearing about an ever increasing concentration of effort and focus on data centers virtually every single day in meetings,\u00a0especially with corporates,\u201d Po Bronson<\/a>, managing director at SOSV<\/a>\u2019s IndieBio<\/a>, told TechCrunch.<\/p>\n In 2025, data centers were obsessed with securing new sources of power. But Lisa Coca<\/a>, partner at Toyota Ventures<\/a>, thinks they\u2019ll adjust their focus for 2026. \u201cThe 2026 data center energy conversation is likely to shift from demand to resilience and the need to accelerate plans to decouple from the grid,\u201d she said. Decoupling could solve some challenges that data centers face, namely in resistance from grid operators and the public, who are increasingly worried<\/a> that the new loads are driving up their electricity prices.<\/p>\n There will still be the need for more power, though, and investors saw geothermal, nuclear, solar, and batteries as having benefitted from the boom. \u201cZero-carbon generation is already among the cheapest sources of power, and growing demand for both grid-scale and distributed batteries is accelerating cost reductions faster than expected,\u201d said Daniel Goldman<\/a>, managing partner at Clean Energy Ventures<\/a>.<\/p>\n Investors also acknowledged the AI bubble might burst; some voiced skepticism about whether it would drag the energy sector down with it.<\/p>\n \u201cCould a bubble burst in 2026? Sure,\u201d said Kyle Teamey<\/a>, managing partner at RA Capital Planetary Health<\/a>. But it\u2019s not likely to affect infrastructure plans, he added. \u201cThe spending for 2026 is already budgeted. The train has left the station.\u201d<\/p>\n Andrew Beebe<\/a>, managing director at Obvious Ventures<\/a>, thinks the data center bubble might burst in 2026 or early 2027, but that no such bubble exists in electricity generation. \u201cWe still need a LOT more power, and we\u2019ll use that \u2014 no build-out bubble there\u2026yet.\u201d<\/p>\n Outside of AI and data centers, Anil Achyuta<\/a>, partner at Energy Impact Partners<\/a>, said reindustrialization will take more of the spotlight this year. \u201cWe need to rebuild supply chains for systems that require multiple components and complex flowsheets,\u201d he said, citing robotics, batteries, and power electronics as examples.<\/p>\n Thanks to the drumbeat of new data center announcements, energy-related startups have gotten a boost this past year, perhaps none more than those working on nuclear fission. In the<\/a> last<\/a> few<\/a> weeks<\/a>, nuclear startups have announced rounds totaling over $1 billion, leading to speculation that many will SPAC or go public through a traditional IPO in 2026.<\/p>\n \u201cNuclear everything is in vogue right now,\u201d Teamey said.<\/p>\n But it will take a while for nuclear power to make a dent in electricity demand. In the meantime, tech companies and data center developers have been turning to solar<\/a> and batteries as inexpensive, rapidly deployable power sources. Grid-scale batteries, in particular, have been a major beneficiary, seeing record-setting deployments<\/a> in 2025. As alternative battery chemistries like sodium-ion and zinc come to market, they stand to lower costs and drive further adoption.<\/p>\n \u201cWe\u2019ll see growth\u00a0in 2026 with new plays on [battery] chemistry and business models.\u201d said Leo Banchik<\/a>, director at Voyager<\/a>. \u201cOne of the key lessons from earlier failures was scaling gigafactories before proving demand or achieving better unit economics than the status quo. The new wave is more disciplined.\u201d<\/p>\n Several investors felt geothermal would step in to help fill the void in the coming years. It helps that investors see enhanced geothermal as a relatively mature technology that\u2019s ready to deploy at larger scales in 2026.\u00a0<\/p>\n \u201cGeothermal will be hot on solar\u2019s heals in terms of new generation,\u201d said Joshua Posamentier<\/a>, managing partner at Congruent Ventures<\/a>. \u201cNatural gas assets are growing pretty linearly. There\u2019s not much new capacity in turbine manufacturing coming online, and they\u2019re selling everything they can. Geothermal will go geometric.\u201d<\/p>\n And while AI is helping to drive demand, companies and technologies that think beyond the data center will benefit the most, said Laurie Menoud<\/a>, founding partner at At One Ventures<\/a>. \u201cData centers are one demand driver, not the whole market.\u201d<\/p>\n Not everyone was in agreement or would proffer a guess. But among those who did, several said nuclear or geothermal startups were most likely to go public, either via IPO or SPAC.\u00a0<\/p>\n The name mentioned most was Fervo, the enhanced geothermal startup that recently raised a $462 million round<\/a>. The company is widely seen as a leader in the sector, and is in the midst of building a 500-megawatt development in Utah that should serve as a template for future power plants. Tapping the public markets would give the company more reserves to tackle additional projects.<\/p>\n Beyond data centers, investors are interested in a range of technologies and sectors, including critical minerals, robotics, and software to manage the electrical grid.<\/p>\n \u201cWe should be paying more attention to grid execution as a category,\u201d said Amy Duffuor<\/a>, general partner at Azolla Ventures<\/a>. \u201cThe quiet winners are companies that make interconnection, planning, and deployment faster software, hardware, and supply-chain solutions that help utilities actually move projects forward.\u201d<\/p>\n Resiliency and adaptation will be big themes in 2026, according to Coca of Toyota Ventures and Posamentier of Congruent Ventures. Achyuta at EIP zeroed in on one potential application: robots that bury electrical transmission lines quicker and more cheaply than humans, mitigating wildfire risks and increasing the grid\u2019s reliability.<\/p>\n Beebe, at Obvious Ventures, said that EV trucking would also be an area to watch. \u201cOne\u00a0of the biggest pieces of news of 2026 is going to be the release and specs behind the Tesla Semi. The\u00a0range and pricing of that vehicle will change that industry\u00a0in ways as powerful as the Model S or 3.\u201d<\/p>\n AI, of course, is likely to play a roll in climate tech\u2019s transformation. \u201cWe will see massive innovation where AI meets the physical world in 2026 on both the infrastructure and consumer app layers.\u201d said Matt Rogers<\/a>, founder at Incite<\/a> and Mill<\/a>. \u201cCombining AI with smart hardware and physical infrastructure will ensure the transformation of trillion dollar industries from manufacturing to life sciences to food systems.\u201d<\/p>\n But it might also pay to keep an eye on technologies that have already been written off, said Bronson at SOSV. \u201cWhen investors finally get tired of a sector and come to the conclusion it won\u2019t pan out, that\u2019s when the real breakthroughs finally happen,\u201d he said.<\/p>\n Below are the detailed comments from the investors who replied to TechCrunch\u2019s survey, listed in alphabetical order. Click the link to jump to a specific response.<\/p>\n Data centers have dominated conversations about energy in 2025. What should we expect in 2026?<\/strong><\/p>\n Reindustrialization beyond data centers will be a major theme. We need to rebuild supply chains for systems that require multiple components and complex flowsheets. For example, supporting next-generation robotics to address labor shortages and national security concerns will require integrated supply chains. Batteries, power electronics, fuel cells, gas turbines, and even home building are examples of end markets\/technologies where parts of the value chain will need to be reindustrialized.<\/p>\n Another area to watch is AI-driven physical science. While companies like Zanskar (predictive AI for geothermal) and Fabric8 Labs (generative cooling for data centers) have shown promise, we haven\u2019t seen many visible breakthroughs yet. That said, the talent pool working on these problems is impressive and could lead to exciting developments.<\/p>\n Where is the biggest opportunity to find or place power on the grid?<\/strong><\/p>\n Gas turbines provide firm capacity and remain the option for many large players deploying data centers. Beyond that, batteries \u2014 particularly sodium-ion \u2014 represent one of the most economical and near-term solutions at the grid-scale. I am bullish about the progress in this technology, and pairing solar with batteries (as companies like Peak Energy are doing) continues to be a highly attractive approach. Next-gen geothermal is also showing a good amount of promise but the timelines are like that of nuclear, potent but will take about a decade to bring full capacity online.<\/p>\n In addition, algorithmic solutions to unlock new power using existing infrastructure (e.g., Gridcare, ThinkLabs AI) and optimize workloads (e.g., Emerald AI) can further enhance grid efficiency. There are also other innovations worth noting in bringing more power, such as applying optical coating to transmission lines to reduce losses being advanced by AssetCool (an EIP portfolio company).<\/p>\n Which climate tech or clean energy startup is most likely IPO in 2026?<\/strong><\/p>\n Fervo Energy, Commonwealth Fusion, Redwood Materials would be my personal guesses, but I could be wrong.<\/p>\n Which technologies do you think will be ready to deploy at larger scales in 2026?<\/strong><\/p>\n Sodium-ion batteries for grid-scale storage are already being deployed and will accelerate significantly in 2026. Another technology to watch is solid-state transformers\u00a0(note Heron Power is an EIP portfolio company). The industry is advancing faster than expected and scale similarly to semiconductors, though at-scale production might take longer.<\/p>\n What trend or technology should we be paying more attention to?<\/strong><\/p>\n One emerging trend is the underground build-out of transmission lines. Advances in robotics could enable a rapid, cost-effective approach that significantly reduces wildfire risk and, in turn, mitigates the substantial carbon emissions associated with such events.<\/p>\n Distributed power, heat, and computation are the last class of trends we are curiously tracking for 2026.<\/p>\n Data centers have dominated conversations about energy in 2025. What should we expect in 2026?<\/strong><\/p>\n Data centers will keep driving record power demand as AI workloads scale. Despite talk of overbuild, we\u2019re unlikely to see much stranded capacity \u2014 as compute gets cheaper and more available, we\u2019ll keep finding new uses for it. The interesting shift is hyperscalers differentiating between clean power sources \u2014 firm vs. intermittent, location, and additionality \u2014 rather than just headline megawatt-hours. This is already playing out in bespoke offtake deals and on-site supply strategies.<\/p>\n Fission and geothermal should see continued momentum from both private capital and federal support. Fusion will likely attract increased federal support as geopolitical competition intensifies, though we\u2019re still many years away from high-capacity-factor grid-scale deployment.<\/p>\n Natural gas peaker alternatives will gain traction too \u2014 using new turbines and modular designs with integrated carbon capture as grids manage new peak demands from AI.<\/p>\n Where is the biggest opportunity to find or place power on the grid?<\/strong><\/p>\n Solar and battery build-out will continue given their strong economics. For dispatchable, 24\/7 baseload power, we\u2019ll see growth in fission, geothermal, and peaker alternatives like modular gas turbines with integrated carbon capture. There\u2019s also a grid-edge opportunity worth watching: large facilities procuring dedicated baseload on-site rather than adding to grid congestion.<\/p>\n Which climate tech or clean energy startup is most likely to IPO in 2026?<\/strong><\/p>\n Most likely fission or geothermal. These companies have raised substantial capital and built strong offtake agreements with hyperscalers and utilities. With multi-billion dollar project pipelines and the need for continued growth financing, several could pursue public markets in 2026.<\/p>\n Which technologies do you think will be ready to deploy at larger scales in 2026?<\/strong><\/p>\n Energy storage deployment is accelerating across residential, commercial, industrial (including data center backup), and grid-scale applications. Domestic supply chains, including second-life battery systems, are gaining traction for stationary storage. We\u2019ll see growth\u00a0in 2026 with new plays on chemistry and business models. One of the key lessons from earlier failures was scaling gigafactories before proving demand or achieving better unit economics than the status quo. The new wave is more disciplined.<\/p>\n Industrial heat pumps and thermal storage systems for steam and process heat are becoming cheaper to operate than gas boilers in many regions and applications, especially where waste heat is available and electricity prices are favorable.<\/p>\n We\u2019ll also see more growth in critical minerals and battery materials projects \u2014 lithium, rare earth, magnesium refining; battery component and cell manufacturing; copper recycling \u2014 maturing with federal support as supply chain security becomes a strategic priority.<\/p>\n What trend or technology should we be paying more attention to?<\/strong><\/p>\n Software and AI enabling physical infrastructure: Real-time factory intelligence that improves energy efficiency and manufacturing yields, AI-based design tools that speed up product development cycles, grid management software that orchestrates intermittent renewables with storage and dispatchable power.<\/p>\n Companies taking a clean-sheet approach to reimagining foundational technologies \u2013 a SpaceX-style rethink of components once considered solved problems. Motor designs that eliminate rare earth dependencies, grid infrastructure like transformers with modern manufacturing techniques, advanced materials processing that significantly reduces costs while improving quality. Improvements in robotics help to enable these cost curves, making U.S. manufacturing economically viable where it wasn\u2019t before.<\/p>\n Lastly, dual-use climate technologies with superior unit economics that happen to strengthen domestic supply chains. Defense and industrial policy are backing these not for climate reasons, but because they deliver cost advantages and supply security.<\/p>\n Data centers have dominated conversations about energy in 2025. What should we expect in 2026?<\/strong><\/p>\n Data centers will again dominate. But there will be a lot more talk of a build-out bubble (in data centers, not electricity generation). We\u00a0will live with the dual-reality of too much money\/debt spent on data centers, and the speculation\u00a0bubble will likely burst (maybe early 2027). But\u00a0at the\u00a0same time, we\u2019ll still need a LOT more power, and will use that \u2014 no build-out bubble there\u2026yet.<\/p>\n Where is the biggest opportunity to find or place power on the grid?<\/strong><\/p>\n For power generation: Geothermal in the\u00a0near-term. Fission in the mid-term. Fusion in the 10-year-plus long-term.\u00a0For\u00a0actual siting: The above technologies can be sited anywhere, but mainly western states for geothermal. For\u00a0batteries \u2014 PJM [the grid that covers the Midatlantic west to parts of Illinois] and Texas.<\/p>\n Which climate tech or clean energy startup is most likely IPO in 2026?<\/strong><\/p>\n Venture-backed: Fervo<\/p>\n Which technologies do you think will be ready to deploy at larger scales in 2026?<\/strong><\/p>\n Geothermal and grid\u00a0scale batteries.<\/p>\n What trend or technology should we be paying more attention to?<\/strong><\/p>\n Grid software and EV trucking. One\u00a0of the biggest pieces of news of 2026 is going to be the release and specs behind the Tesla Semi. The\u00a0range and pricing of that vehicle will change that industry\u00a0in ways as powerful as the Model S or 3.<\/p>\n Data centers have dominated conversations about energy in 2025. What should we expect in 2026?<\/strong><\/p>\n I\u2019m still hearing about an ever increasing concentration of effort and focus on data centers virtually every single day in meetings,\u00a0especially with corporates. To some extent this is from \u201cpicks and shovels\u201d companies who don\u2019t want to get commoditized so they\u2019re strategizing\u00a0how to be a bigger player\/more integrated rather than just a component that\u2019s purchased.\u00a0<\/p>\n A related phrase I hear more frequently is power density and or specific power (power to weight), as a load of corporates are anticipating or planning how their energy divisions branch into robotics. Duncan Turner here is our expert.\u00a0<\/p>\n Which climate tech or clean energy startup is most likely IPO in 2026?<\/strong><\/p>\n I don\u2019t have a climate tech company in my portfolio going public in 2026. Tidal Vision is targeting 2027. That\u2019s my closest. I don\u2019t want to opine on other VC\u2019s portfolio companies, even though I have my feelings, because I shouldn\u2019t open my mouth where I\u2019m only partially informed.<\/p>\n Which technologies do you think will be ready to deploy at larger scales in 2026?<\/strong><\/p>\n For larger scales in 2026, my fastest scaling companies are Tidal Vision and Voyage Foods, which has taken over a General Motors plant in Ohio.\u00a0<\/p>\n What trend or technology should we be paying more attention to?<\/strong><\/p>\n On what to pay more attention to, I\u2019ll toot Duncan\u2019s horn here again \u2014 what he\u2019s doing with the Plasma Forge<\/a> is IMHO going to be super compelling and make everyone study at night.\u00a0<\/p>\n One last note is my consistent feeling that it\u2019s when investors finally get tired of a sector and come to the conclusion it won\u2019t pan out that the real breakthroughs finally happen. I learned this lesson back in 1999 when we were all wondering if the search space was going to be won by\u00a0Yahoo!, AltaVista, Excite, Lycos, or Infoseek.\u00a0<\/p>\nData centers continue to dominate<\/strong><\/h2>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\nThe continuing quest for power<\/strong><\/h2>\n
Which startup is most likely to go public in 2026?<\/strong><\/h2>\n
Trends to watch<\/strong><\/h2>\n
Dive deeper<\/h2>\n
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Anil Achyuta, partner at Energy Impact Partner<\/h3>\n
Leo Banchik, director at Voyager<\/h3>\n
Andrew Beebe, managing director at Obvious Ventures<\/h3>\n
Po Bronson, managing director at SOSV\u2019s IndieBio<\/h3>\n