Increased electricity demand from data centers is boosting Utility ETFs like XLU, VPU, and UTES.

From Nasdaq: 2024-08-13 14:16:00

The Utilities sector leads the S&P 500, showing a 22% gain in the last six months. Top performers like Vistra, Constellation Energy, and NRG Energy are benefitting from increased electricity demand due to data centers.

Data centers are driving AI investments in tech giants like Microsoft and Amazon, who are committing to renewable energy. By 2030, data centers could consume 11% of U.S. electricity, doubling power consumption to 35 gigawatts.

Investors turn to Utilities ETFs like XLU, VPU, and UTES for exposure to the growing data center demand fueled by AI technology. Companies are making significant investments in AI infrastructure to support increased data center capacity.

Stay informed with Zacks’ Fund Newsletter for weekly updates on top ETF news and analysis. Receive key ETF information and analysis delivered straight to your inbox to keep up with the latest trends and developments in the Utilities sector.



Read more at Nasdaq: How AI Power Demand is Boosting Utility ETFs