Displaying items by tag: data centers

الإثنين, 20 تشرين1/أكتوير 2025 05:50

AI and Data Centers are Fueling These Utility ETFs

The rise of artificial intelligence has sparked an unexpected boom in utility ETFs, driven by soaring electricity demand from power-hungry data centers supporting AI infrastructure. Funds like XLU, VPU, IDU, and FUTY have gained over 7% in the past year, outperforming the broader utility sector. 

 

Data centers already consume about 1.5% of global electricity, with the U.S. accounting for nearly half, and the International Energy Agency projects this demand to double by 2030. This surge positions electric utilities as critical enablers of the AI revolution, creating a long-term growth runway supported by regulated rate increases and infrastructure expansion. 

 

Investors have turned to utility ETFs as a way to gain exposure to companies powering the digital economy, particularly U.S. giants like NextEra Energy and The Southern Company. 


Finsum: As AI adoption accelerates, utility ETFs stand to benefit from a sustained and predictable rise in electricity demand.

Published in Wealth Management
الأربعاء, 20 شباط/فبراير 2019 11:27

Four Analyst Picks to Play the Data Center Surge

(New York)

Along with warehouse growth, data center expansion is one of the hottest areas of commercial real estate. So how to play it? These REITs were hit pretty hard at the end of the year, but they are now making a strong comeback. The big driver at the macro level is demand for cloud services and the growth of AI, both of which increase the need for data center space. Four stocks to look at are Equinix, CoreSite Realty (COR), Iron Mountain (IRM), and InterXion Holding (INXN).


FINSUM: Data centers seem to have some strong growth drivers behind them, and along with warehouses, we think they are strong ideas for REITs.

Published in Eq: Real Estate

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