Artificial intelligence is creating a massive electricity market, and that backdrop could strengthen the case for certain kinds of ETFs.
The International Energy Agency expects global data-center electricity consumption to more than double to about 945 TWh by 2030. In the U.S., data centers will likely account for nearly half of electricity-demand growth through the end of the decade.
Crucially for clean-energy ETFs, the IEA expects renewables to meet roughly half of the additional global data-center electricity demand, with renewable generation rising by more than 450 TWh to serve the sector through 2035.
Solar is positioned to capture much of that growth. The IEA expects solar PV generation to add more than 600 TWh annually through 2030, while solar’s share of global electricity generation nearly doubles from around 8% in 2025 to 15% by 2030.
Clean-Energy ETFs Get a New Demand Driver
- The iShares Global Clean Energy ETF (NASDAQ:ICLN) has about $2.2 billion in assets. After a solid run in the first five months of the year with almost 40% growth, the fund experienced a sharp drawdown June onward, with the fund price hitting the lowest point on July 29. The fund is currently up about 5% year-to-date.
- The First Trust Nasdaq Clean Edge Green Energy Index Fund (NASDAQ:QCLN) is up 9.5% year-to-date after seeing a similar price trend as ICLN this year. The ETF’s portfolio extends beyond pure-play renewables, with semiconductor, renewable-energy equipment and electric-vehicle companies among its largest industry exposures.
That diversification matters because the AI electricity buildout isn’t simply a solar story. It is an infrastructure story in which solar, storage, grid upgrades and power electronics increasingly need to scale together.
For a more targeted solar play, there’s the Invesco Solar ETF (NYSE:TAN). The fund tracks the MAC Global Solar Energy Index and holds 36 solar-focused companies. Its largest positions include First Solar Inc (NASDAQ:FSLR), Nextpower Inc (NASDAQ:NXT), Enlight Renewable Energy Ltd (NASDAQ:ENLT) and Enphase Energy Inc (NASDAQ:ENPH). TAN has about $1.11 billion in assets and a 0.70% expense ratio, giving investors more concentrated exposure to the solar buildout than broader clean-energy funds.
Natural Gas: A Supplement for Solar
AI-driven electricity demand could create a much bigger market for renewable energy over the next decade, but natural gas is being tapped to meet near-term power needs
Elon Musk said in a post on X that SpaceX (NASDAQ:SPCX) and Tesla, Inc (NASDAQ:TSLA) are each working toward 100 gigawatts of annual solar production capacity and acknowledged that natural gas will be needed to supplement solar for several years.
SpaceX is also looking to manufacture gas turbine blades and vanes internally, potentially accelerating turbine deployment by up to 18 months.
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