Transition: America’s energy revolution

Pierre Schang, Fund Manager, and Jisia Ranaivosoa, Fund Manager/Analyst, LFDE | February 2026

Despite the United States’ formal withdrawal from the Paris Agreement on 27 January 2026, and Donald Trump’s early second-term suspension of the Green New Deal – which aimed to bolster renewable energy deployment – investment in this segment has reached unprecedented heights. In the first half of 2025 alone, investment hit a record $380 billion.[1] Whether through solar, geothermal or hydroelectric power, we are entering an energy transition where renewables will play a pivotal role; indeed, the US estimates that renewables will account for 93% of the growth in electricity generation in 2026.[2] While the renewable energy market was valued at approximately $1,078 billion in 2025, it is expected to exceed $1,800 billion by 2034.[3] This expansion represents a significant reservoir of opportunity for investors participating in this revolution.

Exponential energy demand

The underlying premise is straightforward: demand for energy and electrification is rising steadily, driven in large part by the upward momentum of Artificial Intelligence. Whereas US electricity consumption grew by an annual average of 0.6% between 2009 and 2024, it is now increasing by 2% to 4% per year.[4] The American power grid – one of the oldest in the Western world – was not designed for such a load. Furthermore, hyperscalers – the giants of cloud computing and large-scale data processing – are unanimous: access to abundant, reliable energy and infrastructure capable of withstanding extreme consumption peaks is essential to maintaining the country’s strategic leadership in technology. Industry leaders are already pivoting. For instance, in late 2025, Alphabet acquired Intersect, a specialist in data centre energy infrastructure to further its goal of 100% renewable energy consumption.

Investing across the value chain

Supported by responsible investors, innovative companies have addressed these challenges at various stages of the value chain. We are particularly interested in pioneers such as First Solar, the leading American solar panel manufacturer. As the only producer capable of manufacturing this infrastructure entirely within the US at scale and at a competitive cost, the company is experiencing robust growth and has announced the opening of a new plant scheduled for commission in late 2026. Another key player is Nextpower, which focuses on the design, installation and operation of dedicated photovoltaic systems. The question of financing innovation – and, crucially, its large-scale deployment – remains central. Companies such as the holding firm HASI have tackled this issue by exclusively financing renewable projects across the full technological spectrum, including hydroelectricity, solar, batteries and biogas. Brookfield Renewable Partners follows a similar model but extends beyond mere financing by providing electricity directly to hyperscalers through long-term contracts.

In a world where demand for electrification continues to surge, renewable energy is establishing itself as a sustainable solution, even in Trump’s America. We are witnessing a transition. We remain convinced that growth in this investment theme will continue to progress – not solely for political or environmental reasons, but as part of a long-term economic and strategic vision.

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[1] BloombergNEF’s 2H 2025 Renewable Energy Investment Tracker

[2] US Energy Information Aministration, New U.S. electric generating capacity expected to reach a record high in 2026, 2026

[3] Fortune Business Insights, 2026

[4] The Business Council for Sustainable Energy, Sustainable Energy in America 2026 Factbook, 2025