3 Digital Infrastructure ETFs In Focus As Trump Reveals Billion-Dollar Data Center Construction Plan

President-elect Donald Trump announced on Tuesday that the Emirati real estate development firm DAMAC Properties will invest $20 billion to construct data centers in the U.S. to meet the growing needs of hyperscale customers. The race for dominance in artificial intelligence hit an inflection point as Microsoft MSFT revealed its $80 billion investment plan to build AI-driven data centers in fiscal 2025, with special regional focus on the U.S.

These developments serve as a green light for investors looking to invest in this theme. Risk-averse investors who are interested in cashing in on this opportunity, but are reluctant to choose individual stocks can choose from a plethora of ETFs tied to data center and digital infrastructure stocks. Here we name 3 such ETFs, which carry stocks of digital infrastructure providers like Microsoft and are poised to mirror the gains of the digital infrastructure industry.

See Also: Microsoft Pauses Construction On $3.3 Billion Data Center Expected To Be Used By ChatGPT-Parent OpenAI For Massive Super Computer

Vanguard Information Technology ETF VGT, with a low expense ratio of only 0.10% and $98 billion under management, holds the maximum position in Apple AAPL with a 16.19% current weightage. Nvidia NVDA and Microsoft are right behind, enjoying weightage of 15.42% and 13.05% of the fund’s total allocation, respectively.

iShares U.S. Technology ETF IYW has $20.5 billion funds under management and charges an expense ratio of 0.39%. It derives its allocation strategies from the Russell 1000 Technology RIC 22.5/45 Capped Index. Nvidia (15.59%), Apple (15.57) and Microsoft (14.16%) take up the three biggest pieces of the pie.

Global X Data Center REITs & Digital Infrastructure ETF VPN focuses exclusively on companies developing and operating data centers. Microsoft and Apple might not be included in the fund currently, but compelling stocks like Equinix EQUIX, Nvidia and Advanced Micro Devices AMD enjoy a place in the fund’s portfolio. Expense ratio that the fund management charges is 0.50%.

Some Notes On Major Fund Holdings

Data centers run by Apple boast unique design features to support energy conservation and have been running on 100% renewable energy since 2014. Nvidia, on the other hand, is expected to ramp up production of liquid-cooled GB200 server racks in the current quarter.

Data center REIT Equinix recently acquired BT's data center business in Ireland. Advanced Micro’s aMI300 product line, featuring high-performance GPU accelerators, is expected to rake in more than $5 billion in revenue for 2024, according to Dataconomy.

Parting Thoughts

Digital infrastructure is the backbone of modern technology. From AI and cloud computing to blockchain and 5G, the global economy relies on robust data centers to keep pace with innovation. A Research And Markets study shows that the Data Center services market, which grew from $56.65 billion in 2023 to $62.23 billion in 2024, is likely to witness a CAGR of 9.99%, hitting $110.34 billion by 2030. Whether it's leveraging Microsoft-heavy funds like VGT or targeting niche players through VPN, investors have a range of tools to capitalize on this transformative megatrend.

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