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2 min read Sustainable Finance

AI fuelled a new wave of climate tech investment in 2025

Low-carbon data centres are drawing billion-dollar rounds.
Melodie Michel
Melodie Michel
AI fuelled a new wave of climate tech investment in 2025
Photo by Geoffrey Moffett on Unsplash

Venture and growth investment in climate tech increased by 8% in 2025, driven by large deals in energy and data centres amid fast-paced AI deployment.

Climate tech venture and growth investment reached a total of US$40.5 billion last year – a modest increase from the US$ 37 billion seen in 2024 but still far lower than the “boom period” of 2020 to 2023, according to new data released today by Sightline Climate.

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