ETF Shares launches data centre ETF

ETF Shares has listed a new exchange traded fund (ETF) dedicated to data centre infrastructure, giving investors exposure to companies supporting the physical expansion of artificial intelligence (AI).

The ETFS Global AI Infrastructure and Data Centres ETF (DTCR) tracks the BITA Data Centre Critical Infrastructure Index, investing in 30 global companies involved in building and operating AI data centres, including power, cooling, networking and equipment and real estate providers.

The fund carries a management fee of 0.39% per annum, with holdings selected based on revenue exposure and weighted by modified market capitalisation.

ETF Shares chief executive Cliff Man said the fund targets the infrastructure underpinning AI, rather than the technology platforms and semiconductor manufacturers more commonly associated with the sector.

"AI doesn't live in the cloud. It lives in buildings full of servers that need enormous amounts of power, cooling and connectivity," Man said.

The listing comes amid volatility in US data centre equities, with man attributing recent market weakness to hedge fund profit-taking and margin deleveraging, alongside concerns around financing costs and permitting restrictions.

He said the near-term pipeline of data centre capacity remained largely committed, although projects planned for 2028 could face delays or additional requirements as governments respond to infrastructure pressures.

"The demand for compute hasn't gone anywhere. If new builds slow in the US, existing capacity becomes more valuable, and the companies that power, cool and upgrade it remain essential," Man said, while cautioning investors to expect volatility.

The launch also comes as data centre operators face increasing scrutiny over energy consumption. Man urged Australia's industry to prioritise renewable energy and recycled water in new developments, arguing community support would be critical to project delivery.

"That's not just good for communities, it's good for investors. A data centre with its social licence locked in is a data centre that gets built on time," he said.

"We'd encourage operators to commit to recycled water and renewable supply, and governments to make that the easy path through planning and approvals."

The funds dominant sectors are industrials and real estate, with exposure concentrated in Taiwan and the US.