Beyond Technology: The Ways Infrastructure ETFs Are Profiting from the AI Boom

The Unsung Backbone of the AI Surge

While the rapid advancement of artificial intelligence often highlights the major cloud providers and semiconductor companies, there is a foundational layer that is equally vital but less celebrated: the physical infrastructure. This includes electrical systems, high-voltage transmission lines, and sophisticated cooling technologies that keep the entire AI ecosystem running.

Modern data centers have transformed from basic facilities into energy-intensive hubs, sometimes consuming as much power as a small city. As a result, companies responsible for constructing and maintaining this digital infrastructure have shifted from traditional industrial roles to essential drivers of technological progress.

The growing need for reliable power and grid connectivity, fueled by widespread electrification trends, is creating significant opportunities for firms involved in building and managing the electrical grid. Their earnings—and those of exchange-traded funds (ETFs) invested in them—have seen a notable boost thanks to the AI revolution.

With each financial quarter, the relationship between AI’s digital expansion and the physical grid supporting it becomes more apparent.

Simply put, without a stable and robust power supply, data centers cannot function. As AI workloads increase, so does the demand for companies providing the essential infrastructure of the digital era.

Leading the Charge in Power Infrastructure

The backbone of AI relies on organizations that design and maintain the electrical networks powering the digital economy. These firms supply the hardware and engineering expertise needed to convert raw electricity into the precise, high-voltage energy required by advanced AI servers.

Some of the most prominent companies in this sector, which have recently seen their order books and market values soar, include:

• Vertiv Holdings (VRT): Specializes in developing, manufacturing, and servicing critical digital infrastructure for data centers. As of the fourth quarter of 2025, Vertiv reported a record backlog of $15 billion—a 109% year-over-year increase—driven by strong demand for power and cooling solutions. This surge provides clear revenue prospects for the coming years.
• Eaton Corporation (ETN): A diversified leader in power management, Eaton saw its Electrical Americas data center orders jump by about 200% in the fourth quarter of 2025.
• Quanta Services (PWR): Designs, installs, and maintains high-voltage transmission lines and electrical distribution systems. By the end of 2025, Quanta reported a $44 billion backlog, reflecting rising demand for data center infrastructure.
• GE Vernova (GEV): Provides both hardware and digital solutions for a resilient and intelligent power grid. In 2025, GE Vernova received $59.3 billion in orders, up 34% organically, led by demand in its Power and Electrification divisions.

As governments invest in grid stability and businesses pursue decarbonization, these companies are positioned at the crossroads of industrial and utility sectors—benefiting from both the AI boom and the global shift toward clean energy.

Why Infrastructure ETFs Matter

For investors, selecting individual winners in a rapidly changing hardware landscape can be challenging. Thematic ETFs focused on infrastructure provide a diversified approach, granting exposure to the entire digital grid expansion.

Infrastructure ETFs allow investors to participate in the "Power Supercycle" without the risks associated with single-stock investments. These funds capture companies that build and manage the grid, as well as those facilitating the energy transition.

Consider these ETFs for broad exposure to power infrastructure:

• Defiance AI & Power Infrastructure ETF (AIPO): With $244 million in assets, this fund includes 59 companies advancing decentralized energy, grid technology, data center operations, and AI hardware. Its top holdings are PWR (9.10%), VRT (8.98%), GEV (8.60%), and ETN (7.58%). AIPO has risen 26.9% over the past year and charges a 0.59% fee.
• First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID): With $7.92 billion in assets, GRID covers 113 companies involved in electric grid technology, meters, devices, networks, energy storage, and smart grid software. ETN is its sixth-largest holding (7.60%), and PWR is eighth (4.49%). GRID has climbed 42.2% in the past year with a 0.56% fee.
• iShares U.S. Power Infrastructure ETF (POWR): This fund holds $129.4 million in assets and invests in 69 U.S. companies across power supply, generation, transmission, distribution, and storage. Its top four holdings are PWR (6.80%), GEV (6.27%), NextEra Energy (6.25%), and ETN (5.59%). POWR has gained 16.1% over the past year and charges a 0.40% fee.

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