Growth of Data Center Investment ETFs Amid AI Demand
The demand for data centers is surging due to the rise of cloud services and AI applications, prompting interest in related investment vehicles. European investors have limited options, with only three UCITS ETFs focusing on data centers, each targeting different aspects of the market.
Theia Market Signal Identification - AI Assisted
The iShares AI Infrastructure UCITS ETF, launched in December 2024, has approximately €770 million in assets, emphasizing AI infrastructure. The Global X Data Center REITs & Digital Infrastructure UCITS ETF focuses solely on data center REITs, holding around €265 million.
The HANetf Digital Infrastructure & Connectivity UCITS ETF, while the smallest, highlights Europe's first thematic ETF on digital infrastructure, with over €19 million in assets. Risks vary across these funds, with data center REITs sensitive to interest rates and AI infrastructure funds tied to semiconductor cycles. Investor focus is shifting towards the specific segments of the data center value chain as market pricing pressures increase.
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