For years, the conversation around the energy transition centered on climate change: reducing emissions, divesting from fossil fuels and investing in cleaner sources of energy.
Today, climate change is only one piece of the puzzle.
A powerful convergence of technological, economic and geopolitical forces – from artificial intelligence to global energy volatility and the rapid electrification of transportation – is reshaping how energy is produced and consumed.
Together, these trends are creating sustained demand for new infrastructure – and accelerating investment across the energy sector.
“The conversation is shifting,” says James Dick, Senior Sustainable Investment Associate at Genus Capital Management. “These days it’s more about transition rather than divestment.”
For investors, that distinction matters. Rather than focusing solely on what the world is moving away from, attention is turning to what needs to be built to support the next generation of energy systems.
Here’s why investing in the energy transition is increasingly viewed as urgent – and what it means for investors.
AI is driving growth in energy demand
For decades, electricity demand across developed markets remained relatively flat¹ thanks to efficiency gains that offset increases in consumption.
That trend has reversed.
“We’re finally seeing demand growth in energy,” says Dick. “AI is really the largest driver.”
The International Energy Agency projects electricity use from data centres could more than double by 2030², driven largely by artificial intelligence.
Supporting that growth requires more than additional renewable energy generation. Data centres operate around the clock and need reliable, always-on power, driving investment into transmission infrastructure, battery storage, grid modernization and complementary technologies such as small modular reactors.
“All this capital from companies like Microsoft and Meta³ is allowing this transition to be financed,” Dick says. “Their investors have pushed them toward renewable energy, so they’re looking for effective ways to do that.⁴“
Energy security has grown in importance
Recent geopolitical events have reinforced the importance of energy independence and diversified supply.
Europe’s dependence on Russian natural gas exposed the risks⁵ of relying on external energy sources, while tensions around the Strait of Hormuz⁶ highlight the vulnerability of global energy markets.
“Being able to invest in cleaner, more locally controlled energy systems is something we need,” says Dick. “One of those ways is building out a diversified energy system.”
Electrification is bigger than the headlines suggest
Electric vehicles may no longer dominate the news cycle, but electrification continues to accelerate. “Electrified transportation makes up the largest share of energy transition investment,” says Dick.
According to Bloomberg⁷, electrified transport attracted approximately US$892 billion in investment in 2025, making it the largest category of global energy transition spending, and representing a 21% increase over the previous year.
And as adoption continues to grow⁸, investment is extending well beyond vehicles themselves. Charging networks, transmission infrastructure and distribution systems all require significant upgrades to support a more electrified economy.
Opportunities to invest in the energy transition are expanding
The breadth of investment underway has enabled capital to flow into everything from grid modernization to battery storage, and from clean industrial processes to emerging technologies designed to support a more resilient and electrified economy.
That breadth reflects a transition that is widening well beyond its original focus on renewable power generation. “Last year we had a record amount of capital invested in the global energy transition,” says Dick, citing an 8% increase⁹ over the previous year – at US$2.3 trillion invested in 2025.
That expanding opportunity creates unique ways for investors to participate. For example, at Genus, investing in our High Impact Equity Fund provides exposure to companies involved in power infrastructure, grid modernization and renewable energy generation, such as GE Vernova, Siemens Energy AG and Solaria Energía.
But impact investing doesn’t have to stop at public markets.
“You can also explore opportunities to make an impact in your community,” says Dick. That could include Indigenous-led impact projects, community energy initiatives, affordable housing developments or nonprofit organizations working to improve energy efficiency in municipalities.
The next phase of the energy transition has already begun
The range of opportunities available to investors today reflects how much the transition has broadened. What began as a conversation about renewable power generation now spans grid infrastructure, battery storage, electrified transportation, clean industrial processes and beyond – with record capital flows to match.
That breadth means more entry points, but also more urgency. Demand is rising across multiple fronts at once, and the infrastructure required to meet it continues to outpace what’s currently being built.
For investors, that gap is where the opportunity lives – and where attention is increasingly focused.
To learn more about investing in the energy transition, explore our impact investment services today.
References
- After more than a decade of little change, U.S. electricity consumption is rising again. (2025, May 13). US Energy Information Administration. Retrieved June 11, 2026, from https://www.eia.gov/todayinenergy/detail.php?id=65264
- AI is set to drive surging electricity demand from data centres while offering the potential to transform how the energy sector works. (2025, April 10). IEA. Retrieved June 11, 2026, from https://www.iea.org/news/ai-is-set-to-drive-surging-electricity-demand-from-data-centres-while-offering-the-potential-to-transform-how-the-energy-sector-works
DiGangi, D. (2026, May 28). Hyperscalers didn’t set out to be power companies. The grid left them no choice. Utility Dive. https://www.utilitydive.com/news/hyperscaler-data-center-power-companies-grid-utilities/820568/
- Ho, V. (2026, February 18). Microsoft meets 2025 renewable energy goal with global projects and community impact. Source. https://news.microsoft.com/source/features/sustainability/6-projects-that-helped-microsoft-meet-its-renewable-energy-goal/
Fazelianov, E. M. (2022). The energy crisis in Europe and Russian gas supplies. Herald of the Russian Academy of Sciences, 92(S9), S902–S907. https://doi.org/10.1134/s1019331622150035
Magazine, D. (2026, March 19). Global Tensions and the Strait of Hormuz Crisis: A geostrategic analysis. Diplomat Magazine. https://diplomatmagazine.eu/2026/03/18/global-tensions-and-the-strait-of-hormuz-crisis-a-geostrategic-analysis/
BloombergNEF. (2026, January 26). BloombergNEF Finds Global Energy Transition Investment Reached Record $2.3 Trillion in 2025, Up 8% from 2024. BloombergNEF. https://about.bnef.com/insights/clean-energy/bloombergnef-finds-global-energy-transition-investment-reached-record-2-3-trillion-in-2025-up-8-from-2024/
EVTech.News Editorial Team. (2026, June 11). High fuel prices drive global EV sales surge in 2026: Europe and Asia lead while US demand stays resilient. EVTech.News. https://evtech.news/news/high-fuel-prices-drive-global-ev-sales-surge-in-2026-europe-and-asia-lead-while-us-demand-stays-resilient.html
BloombergNEF. (2026, January 26). BloombergNEF Finds Global Energy Transition Investment Reached Record $2.3 Trillion in 2025, Up 8% from 2024. BloombergNEF. https://about.bnef.com/insights/clean-energy/bloombergnef-finds-global-energy-transition-investment-reached-record-2-3-trillion-in-2025-up-8-from-2024/
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