While AI stocks such as Nvidia and Microsoft crowd the headlines, they have also become synonymous with the concentration risk of the AI investment thematic. According to JP Morgan Asset Management, direct AI-related stocks have driven about 75% of the S&P 500 returns since ChatGPT’s launch in late 2023.

The JP Morgan analysis highlights the extent to which stocks with indirect links to AI such as utilities and capital equipment companies have been overshadowed by the ‘AI direct’ companies – in fact, the former contributed less than 1 per cent each to the S&P 500 total return over the same period.

Why it matters: BloombergNEF forecasts that US data centres could consume around 8.6% of the nation’s electricity by 2035 (up from 3.5% share today). As energy users, US data centres outpace electric vehicles, hydrogen and other sectors with high power demands, according to Bloomberg’s analysis. That demand could translate to stronger cash flows for global utilities. 

• Data centres are eclipsing office construction spending, according to JP Morgan’s analysis, and coming under increased scrutiny for their impact on power grids and rising electricity prices.

Powering ETFs: As AI models and data-centre capacity expand, more investors are focusing on the ‘real-world’ infrastructure that underpins digital growth. Much of the focus is gaining exposure to the power grids, energy producers, and the infrastructure supporting them.

Exchange Traded Fund (ETF) issuers have issued products in response to this trend:

• In April 2025, Global X ETFs launched the Artificial Intelligence Infrastructure ETF (ASX: AINF), the first fund on the ASX specifically designed to capture companies building the physical foundations of AI. It has a total return of 44.57% since inception (at October 10), offering investors exposure to companies supporting the data centre infrastructure build, including copper and uranium producers, electric utilities, engineering and materials firms, among others.
• Other options include the VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA), which includes core allocations to electric utilities (29.9%), transportation (18%), and oil and gas consumables (13.4%). It includes global infrastructure operators Transurban Group (ASX: TCL) and Spanish airport operator Aena SME SA (BME: AENA) among its top holdings.
• Other ETFs offering exposure to regulated assets and listed utilities and infrastructure assets include iShares Core FTSE Global Infrastructure (Hedged) ETF (ASX: GLIN), which has just over half its portfolio in utilities (51%), followed by industrials (29.1%), and energy (13.65). It includes Aena SMA SA (5.2%) and US utility and renewable-power company NextEra Energy (NYSE: NEE) in its top holdings.
• The Vanguard Global Infrastructure ETF (ASX: VBLD) aims to track the return of the FTSE Developed Core Infrastructure Index and returned investors of 11.75% in the year to 10 October, 2025. Sector exposures include conventional electricity (35.6%), pipelines (17.7%), railroads (16.8%), and smaller positions in gas distribution (4.3%), transportation (3%), and water utilities (2.6%).

Use case: Advisers are using infrastructure exposures in different ways depending on client goals. Other ways investors can gain indirect exposure to AI trends is through diversified global ETFs. Many international share funds include meaningful allocations to listed utilities and infrastructure, which could benefit as AI continues to reshape energy and data use worldwide.

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