A look into private equity fundraising activities suggests strong Q1 launches of funds with renewable energy among their targets. Brookfield Asset Management Ltd, KKR & Co Inc, and Stonepeak Partners LP are all raising cash for $20 billion funds that include renewable energy investment. Brookfield’s chief financial officer, Hadley Peer Marshall, says a $7 trillion investment is needed to finance the rapid growth of artificial intelligence.
So far this year, clean energy investment has offered the potential for substantial returns. The Bloomberg Clean Energy Index has soared 31%, while the Bloomberg 500 Index rose 15% and the Bloomberg Magnificent Seven Index rose 20%.
While the growth in power demand from data centers ramps up, data center operators are decarbonizing. This is being driven by net-zero commitments and new regulations. With tech giants accounting for 43% of clean power purchase agreements signed in 2024, the data centers supplying the infrastructure for their AI projects are likely to continue moving toward green energy.
