Meta, Amazon, Palantir Fuel AI Data Center Boom — ETFs Are The Sleeper Bet

AI isn’t just consuming the world; it’s poised to devour the power grid. Big tech companies such as Meta Platforms META, Amazon AMZN and Palantir PLTR are going all-in on artificial intelligence, fueling a historic development of data center infrastructure. For ETF investors, that implies it’s time to move beyond Nvidia and begin focusing on the literal power behind the machine.

Goldman Sachs projects that global data center electricity demand will increase by 165% by 2030, making them among the world’s top 10 consumers of electricity. With capex cycles of $100 billion-plus underway, power generation-related ETFs, infrastructure ETFs, and digital real estate ETFs are in play.

Power & Utilities

With U.S. data-center electricity consumption set to surge, utility ETFs may enjoy long-term tailwinds.

Utilities Select Sector SPDR Fund XLU – owns large, regulated utilities such as NextEra NEE and Duke Energy DUK, which may benefit from AI-fueled load growth.

First Trust Nasdaq Clean Edge Smart Grid Infrastructure ETF GRID – provides exposure to the firms upgrading the electrical grid, from smart meters to transmission technology. Johnson Controls International Plc JCI, Eaton Corporation Plc ETN and ABB Ltd ABBNY hold the largest chunks of the fund’s holdings.

Invesco Solar ETF TAN – becomes more relevant since Goldman projects 25–30% of new generation will be provided by solar.

These funds provide investors with a diversified holding in the enormous re-wiring that AI will require.

Infrastructure & Industrials

Behind each AI cluster lies a concrete-intensive reality: HVACs, substations, turbines, and a substantial amount of steel. Infrastructure-based ETFs provide a straight shot at the buildout:

Global X U.S. Infrastructure Development ETF PAVE – has holdings such as Eaton and Nucor NUE, all related to power systems and data construction.

iShares U.S. Industrials ETF IYJ – has holdings in Caterpillar CAT, Eaton, and Emerson Electric EMR, essential providers of backup power and cooling systems.

Meta alone intends to construct two multi-gigawatt clusters of AI, pointing to a multi-year infrastructure-driven growth.

Also Read: Mark Zuckerberg Poaches Sam Altman’s Talent With Multimillion-Dollar Offers To Build Meta’s AI Team

Digital Infrastructure & REITs

As demand for data centers goes parabolic, real estate investment trusts (REITs) and digital infrastructure players are observing that narrowing supply-demand dynamics are propelling margins:

Real Estate Select Sector SPDR Fund XLRE – more general exposure to REITs, with substantial stakes in digital infra. This ETF offers a long-term perspective on the physical and digital infrastructure supporting AI growth.

Quick Background: Why Now?

Goldman Sachs estimates that global data center demand will reach 92 GW by 2027, a 50% increase from late 2025, largely due to AI. Meta’s future Prometheus (1 GW) and Hyperion (5 GW) clusters indicate the size of things to come. Amazon and Palantir are also spending significant amounts on compute infrastructure.

Meanwhile, firms such as Caterpillar and Cummins CMI are experiencing billions of dollars’ worth of new orders for data center-related generators, and Jabil JBL has just increased its AI-related revenue estimate by $1 billion.

The AI revolution is being built from the ground up. From server racks to solar panels, the buildout of the data center is producing new champions across industries. And the wisest way to gain diversified exposure may very well be through ETFs that are quietly driving the next wave of AI.

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