The Best ETF for AI Infrastructure Investors

The artificial intelligence (AI) investment thesis keeps pointing back to Nvidia, Microsoft, and the other megacap names that dominate technology indexes. But the real constraint on AI deployment isn't algorithms or model improvements -- it's electricity, data center space, and the grid connections to deliver hundreds of megawatts to specific locations.

Hyperscalers (the massive cloud computing companies like Amazon, Microsoft, and Alphabet) are committing $350 billion in capital spending this year alone to build the physical infrastructure that AI requires. Yet most AI-themed exchange-traded funds (ETFs) remain heavily weighted toward software and semiconductors rather than the landlords and operators capturing those infrastructure dollars.

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One ETF stands out for pure exposure to this buildout: the Global X Data Center & Digital Infrastructure ETF (NASDAQ: DTCR), which targets data center real estate investment trusts (REITs) and digital infrastructure operators that lease space and power to hyperscalers on multiyear terms.

This ETF is one of the rare few that delivers what its name promises -- direct ownership of the physical assets supporting the AI revolution. Read on to find out more.

The infrastructure spending wave

Microsoft, Amazon, Meta, and Alphabet are collectively on track to spend approximately $350 billion in 2025 on AI-driven data centers and chips. Amazon alone is targeting roughly $125 billion in capital expenditures this year, while Alphabet raised its 2025 guidance to $91 billion to $93 billion. Microsoft outlined roughly $80 billion for fiscal year 2025 for AI-enabled data centers.

Estimates put global AI-related infrastructure spending at $3 trillion to $4 trillion by 2030 for chips, data centers, and power infrastructure. Oracle reported remaining performance obligations surging to $455 billion -- evidence of multiyear cloud and AI commitments that require concrete, power, and graphics processing units (GPUs) rather than just software licenses.

What the fund owns and doesn't own

The Global X Data Center & Digital Infrastructure ETF holds the REITs and operators that lease power-dense data center space on long-term contracts. The fund is up 35% year to date as of November 2025, trades at a price-to-earnings ratio (P/E) of 34, and carries a 0.5% expense ratio.

Top holdings include Equinix and Digital Realty Trust, the two largest publicly traded data center REITs with global footprints and hyperscaler customers. These aren't speculative pivots or newly constructed campuses -- they're established operators with existing power infrastructure, utility relationships, and multiyear lease contracts providing predictable cash flows.

The investment case is simple: When hyperscalers spend $350 billion on data centers, the REITs in this fund collect the rent. Other AI infrastructure ETFs dilute exposure with semiconductor manufacturers or software companies that don't directly benefit from data center construction spending.

The alternative funds problem

Several ETFs market themselves around AI infrastructure themes, but their holdings tell a different story. Many include Nvidia, Advanced Micro Devices, and other chip designers that benefit from AI spending but don't operate the physical infrastructure. Others blend data center exposure with cloud software, cybersecurity, or telecommunications holdings that dilute the pure infrastructure thesis.

The Global X Data Center & Digital Infrastructure ETF avoids this dilution by sticking to its mandate. The fund owns companies that generate revenue from leasing physical space and power, not from selling chips or software licenses.

The infrastructure advantage

This fund will not swing as much as single operators like Applied Digital, Core Scientific, or Iris Energy. Moreover, it trades some upside potential for diversification, spreading exposure across established REITs with global portfolios rather than single-campus build-outs.

So why own it? This AI ETF reduces single-name risk while keeping exposure to the data center cash flows hyperscalers must pay. If you want full-stack coverage, however, you will have to pair it with a power grid ETF to capture substations and transmission. For most investors, though, the Global X Data Center & Digital Infrastructure ETF alone provides plenty of AI-infrastructure exposure.

George Budwell has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Digital Realty Trust, Equinix, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.