One of the biggest non-obvious stories of the AI boom isn’t just about microchips; it’s about raw power.
AI data centers are pulling massive amounts of electricity, and our current national grid is simply not prepared for the surge. This creates a critical bottleneck, but also a compelling investment thesis: the companies responsible for building, upgrading, and hardening our energy infrastructure are the new “picks and shovels” of this gold rush.
A recent article in Barron’s (“This Company Powers AI Infrastructure. Buy the Stock.”) highlighted this exact trend by focusing on one key player: Quanta Services (PWR). The piece notes that Quanta is in a prime position with its specialized labor force to handle the complex grid modernization our country needs, and it boasts a massive project backlog as evidence. It’s a great read that really connects the dots between AI demand and real-world infrastructure work.
You can read the full piece on the Barron’s website: https://www.barrons.com/articles/buy-quanta-services-stock-price-pick-0001457837
From a Single Stock to a Broader Theme
While the article makes a strong case for a single stock, many of us (especially “power ETF buyers”) prefer to invest in the broader theme. Why buy one company when you can own the entire sector poised to benefit? This approach helps diversify risk while still capturing the upside from the entire electrification and grid-hardening trend.
For investors who see the bigger picture, here are a few ETFs that provide targeted exposure to this AI-infrastructure thesis. I’ve included their allocation to Quanta Services (PWR) to show how they directly relate to the original article’s idea, but they also give you exposure to many other companies in this space.
Potential ETFs to Consider (Large Allocation to PWR)
- Defiance AI & Power Infrastructure (AIPO) – 7.72% allocation to PWR
- Global X U.S. Electrification ETF (ZAP) – 5.13% allocation to PWR
- Tema Electrification ETF (VOLT) – 4.92% allocation to PWR
- SmartETFs Smart Transportation & Technology ETF (MOTO) – 4.85% allocation to PWR
- Themes US Infrastructure ETF (HWAY) – 4.22% allocation to PWR
Explore More ETFs on Thematic Dashboards
To continue your research and find more ETFs aligned with this theme, you can use interactive industry dashboards. The link above will take you to a thematic dashboard where you can expand the Infrastructure group and focus on the Green & Electrification and Digital & Communications sub-groups to find more funds.
Disclaimer: This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
