AI’s Energy Surge Is Straining U.S. Grids—and Powering a Market Rally

The surge in U.S. spending on AI infrastructure is set to drive electricity prices noticeably higher next year—bad news for consumers but a potential boon for investors positioned to profit from the “AI power” trade. Data centers are already among the heaviest industrial users of electricity, accounting for roughly 1–2% of global power demand today.

This rising demand for power is already showing up in the earnings and stock performance of companies like GE Vernova (GEV) (up nearly 300% over the past year) and utilities such as Vistra (VST), NRG Energy (NRG), Constellation Energy (CEG). Rather than hand-pick single names, consider these ETFs to capture the broader tailwinds of AI-driven power consumption and the utilities infrastructure that supports it:

Utility ETFs: Riding the AI Electricity Wave

Utilities Select Sector SPDR Fund (XLU) Provides diversified exposure to large-cap U.S. utilities—firms poised to benefit from higher grid investments and rate adjustments as power demand accelerates.

Global X Data Center REITs & Digital Infrastructure ETF (DTCR) Focuses on real estate companies owning and operating the data centers themselves, directly playing the theme of rising energy use in the digital backbone of AI.

Grid & Infrastructure ETFs: Modernizing the Electric Backbone

First Trust Nasdaq Clean Edge Smart Grid Infrastructure ETF (GRID):

Invests in global companies upgrading and maintaining electric grids and smart grid infrastructure. Holdings include Schneider Electric, Quanta Services, and National Grid, all central to grid modernization in response to AI-driven demand increases.

Global X U.S. Infrastructure Development ETF (PAVE):

Focused on firms in power systems, data construction, and grid upgrades. Companies like Eaton and Nucor are pivotal to electrical infrastructure expansion.

Renewable Energy & Clean Power ETFs: Supplying Sustainable AI Energy

Invesco Solar ETF (TAN):

Targets companies in solar energy, capturing growth as data centers seek more renewable sources.

Global X Hydrogen ETF (HYDR):

Focus on next-generation hydrogen firms benefiting from AI-fueled optimism and accelerating the energy transition.

Nuclear Energy Trend:

With AI pushing up total U.S. power demand, nuclear energy is experiencing renewed attention as a consistent, zero-carbon source for data centers. Relevant nuclear/clean energy ETFs include the Carbon Collective Climate Solutions U.S. Equity ETF (CCSO) and Range Nuclear Renaissance Index ETF (NUKZ).

Additional Considerations

Major AI companies are increasing their investments in power supply and data infrastructure, signaling that utilities and infrastructure will continue to benefit from robust, long-term demand. As with all ETFs, be mindful of fees, concentration risk, and sector rotation cycles that could impact performance.

Investors looking to capitalize on the rise of AI’s power demand should consider a blend of utility, grid infrastructure, and clean energy ETFs that are well-positioned to benefit from this transformational transformational megatrend.

Pinpoint the top picks for profiting from AI’s booming power demand with our ETF Compare Tool