Even as President Trump scales back clean energy backing, investments in clean energy remain attractive to funds due to soaring AI-driven electricity demand and falling renewable costs. The S&P Global Clean Energy Transition Index has gained 56.19% year to date and 16.26% quarter to date.

According to Reuters, in addition to Trump’s cuts to clean energy funding, accelerated expiry of tax credits and slowed permitting dimming growth expectations, the International Energy Agency (IEA) last month lowered its 2025–30 forecasts for U.S. wind and solar growth by nearly 60% and 40%, respectively.

However, investment funds remain active in U.S. renewables, encouraged by strong market fundamentals and the growing need to modernize the nation’s power grid.

According to Luba Nikulina, Chief Strategy Officer at IFM Investors, even with policy uncertainty, U.S. demand for renewables remains strong, fueled by rapid growth in AI and digital infrastructure, as quoted in the abovementioned Reuters article.

Brookfield revealed last month that it raised a record $20 billion for its Global Transition Fund II, backed by an additional $3.5 billion in co-investments. Additionally, per Reuters, it has also secured major U.S. clean energy supply deals with Microsoft and Google.

As per Todd Fowler, as quoted on Reuters, significant and ongoing capital investment will be required across the energy sector to meet rising power demand. Fowler also noted that falling costs in solar, onshore wind and battery storage are drawing fresh capital, while technologies that integrate multiple generation sources have become essential investment themes.

Data center growth, renewed U.S. manufacturing buildout and accelerating economy-wide electrification are pushing U.S. power demand higher for the first time in decades. The U.S. Energy Information Administration forecast 2.5% demand growth in U.S. power demand in 2025 and 2.7% in 2026.

Per International Energy Agency data, as quoted on another Reuters article, last year, global investment in clean energy totaled $2.2 trillion, more than double the amount spent on fossil fuels. Additionally, the adoption of solar and wind has ramped up, electric vehicle sales are rising sharply worldwide and improvements in energy efficiency are gaining momentum.

At the same time, the surge in AI demand is pushing major tech companies to lock in clean energy to run their energy-hungry data centers. With the global AI market projected to exceed $1.6 trillion by 2032, the sector is becoming an increasingly attractive investment theme and this momentum is expected to continue driving investor interest in clean energy.