(Reuters) - Macquarie Group's asset management division is taking a minority stake in the green-energy arm of U.S. investor D.E. Shaw for an equity investment of as much as $1.73 billion, the Australian company said on Tuesday.

The deal, subject to regulatory approvals, is being struck between funds managed by Macquarie Asset Management and D.E. Shaw Renewable Investments (DESRI), which according to Macquarie has a development pipeline of over 25 gigawatts.

Macquarie's investment comes at a time when global firms are facing the brunt of rising geopolitical turbulence, high borrowing costs and sticky inflation.

The investment shows strong demand from corporations and governments to adopt cleaner sources of power and combat climate change.

"We believe that this partnership with DESRI well-positions Macquarie Asset Management to capture this opportunity and help accelerate the transition to net zero," said William Demas, head of Macquarie Asset Management Green Investments for the Americas.

"With the growth of the renewable energy market, suppliers and customers are seeking trusted partners that can scale and consolidate the market."

DESRI operates across 24 states with over 10 gigawatts of generation capacity, according to its website.

Bloomberg News first reported on the investment earlier on Tuesday.

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shailesh Kuber)