It’s widely known that artificial intelligence (AI) is an energy-intensive pursuit. The data centers needed to power this disruptive technology are massive power consumers. Therefore, there’s no shortage of bank experts forecasting exponential increases on that front in the coming years. The energy required to advance AI has myriad investment implications, including in the clean energy space, indicating ETFs such as the ALPS Clean Energy ETF (ACES ) merit consideration by tactical investors.
ACES, which tracks the CIBC Atlas Clean Energy Index, is coming off a scintillating run in 2025 and more upside could be in store for the $117.44 million ETF, which holds domestic and Canadian renewable energy equities.
To be sure, the bull case for clean energy stocks and ETFs such as ACES isn’t entirely AI-dependent. Factors including increased global adoption facilitated by lower costs also bode for ACES member firms, indicating the AI/data center scenario could be icing on the cake.
AI May Make ACES Awesome
While ACES isn’t an AI ETF, it’s hard to ignore that technology’s potential impact on the clean energy industry. A slew of data points confirm as much.
“Data center electricity demand driven by AI is projected to more than double by 2030, reaching roughly 945 terawatt‑hours (TWh) — similar to the annual electricity use of Japan,” according to CarbonCredits. com. “Global economic impact of AI could reach $15 trillion by 2030, with a significant share coming from applications that improve sustainability and energy efficiency.”
Of note to investors considering ACES, many hyperscalers fit the bill as carbon-aware companies and have established track records of taking steps aimed at reducing their emissions and reaching carbon neutrality. As a result, some of those AI-related companies are prioritizing clean energy sources when engaging in data center agreements.
“Companies that combine AI with sustainable practices are becoming market leaders. Firms investing in AI for energy efficiency and climate monitoring not only help the environment but also position themselves for long-term growth as the world moves toward cleaner energy systems,” notes CarbonCredits.com.
Interestingly, some ACES holdings are more AI-adjacent than some investors realize. Take the case of Itron (ITRI), a top 10 holdings in the ETF. Last year, Itron, which commands a weight of nearly 5% in the ACES portfolio, inked a pact with Microsoft (MSFT) to leverage that company’s AI tools to improve grid integrity and bolster use of renewable energy.
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