Growing Need for Data Centers Boosted by AI: One Stock and Two ETFs to Capitalize on this Trend
AI's rapid advancement is leading to a surge in data center needs, fueling an explosion in computing power. Investors who believe in AI's continued growth and impact on everyday life might want to consider companies like Vistra (VST 0.97%), the Global X Data Center & Digital Infrastructure ETF (DTCR 2.14%), and the Global X MLP & Energy Infrastructure ETF (MLPX 1.36%).
Embracing the AI/Data Center Spending Boom with Vistra
Investments in low-carbon and zero-carbon power generation are key to supporting the growing demand for AI applications. Companies like Microsoft Azure, Alphabet's Google Cloud, and Amazon Web Services are increasingly relying on environmentally friendly power sources to meet their emissions goals and secure their power needs. Vistra is well-positioned to benefit from this trend, having added 4,000 megawatts to its nuclear generating capacity following its acquisition of Energy Harbor Corp.
Vistra is a merchant power generation company that has seen its stock soar due to speculation about potential lucrative long-term deals. The company's potential for data center demand is reflected in the words of its Chief Strategy & Sustainability Officer, Stacey Dore, who mentioned discussions with "hyperscalers" about nuclear uprates and new gas plants to support data center projects.
A Conservative Approach with Global X Data Center & Digital Infrastructure ETF
Investors who wish to gain exposure to the data center industry, but prefer a more conservative approach, could consider the Global X Data Center & Digital Infrastructure ETF. This ETF provides investors with access to leading data center companies, with a focus on data center operators and semiconductor stocks that are benefiting from AI's growth.
With a modest 0.5% total expense ratio, the Global X Data Center & Digital Infrastructure ETF is an attractive option for those looking to invest in the data center industry without breaking the bank.
Power Your Passive Income Stream with Global X MLP & Energy Infrastructure ETF
The Global X MLP & Energy Infrastructure ETF targets midstream companies and master limited partnerships (MLPs) and has outperformed the energy sector due to its emphasis on the midstream segment. The fund includes high-yield infrastructure companies like Oneok, Enbridge, Williams Companies, and Kinder Morgan.
This ETF is a good fit for investors who want to benefit from the energy sector without the volatility associated with swings in oil and gas prices. As AI demand increases energy consumption, the future seems promising for the midstream industry, and the Global X MLP & Energy Infrastructure ETF could be a worthwhile consideration for investors seeking exposure to this sector.
As AI and data centers continue to grow, these three companies and ETFs offer various ways to capitalize on this trend, providing value and growth potential for investors.
- Some investors might be interested in artificial intelligence-driven investments, and they could consider investing in companies that focus on low-carbon or zero-carbon power generation, such as purchasing shares of Vistra (VST 0.97%).
- For those looking to invest in the data center industry but prefer a more passive approach, they might consider the Global X Data Center & Digital Infrastructure ETF (DTCR 2.14%), which includes data center operators and semiconductor stocks benefiting from AI's growth, at a low cost of 0.5% total expense ratio.
- To benefit from the midstream industry, which is expected to grow due to AI's increasing energy consumption, investors can consider the Global X MLP & Energy Infrastructure ETF (MLPX 1.36%), which includes high-yield infrastructure companies like Oneok, Enbridge, Williams Companies, and Kinder Morgan.
- Those who believe in the continued growth of AI and data centers might consider investing in exchange-traded funds (ETFs) like the Global X MLP & Energy Infrastructure ETF (MLPX 1.36%) or the Global X Data Center & Digital Infrastructure ETF (DTCR 2.14%), which could provide opportunities for value and growth.
