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Project-ready infrastructure has continued to dominate climate financing in the first half of 2026, as power solutions targeting the data center market experienced record growth in private and public markets, according to new data from Net Zero Insights.
Private market climate tech ventures totaled $41.3 billion in the first half of this year, up only slightly compared to the $43.6 billion spent in the first half of 2025. But the make up of the market has changed; in 2026, it’s dominated by fewer, larger deals. The average round size has jumped from $18 million to $27 million.
That’s while the total number of deals dropped to a record low, continuing a capital concentration trend that has been taking shape for the last two years.
In 2024, the amount of private debt for climate tech skyrocketed compared to the prior two years, driven by a handful of unusually large rounds targeting capacity expansion and facility construction. Among those deals was H2 Green Steel’s $5.17-billion raise, which provided additional financing for a planned plant in Sweden.
