Artificial intelligence is doing a lot of things, but one of the most concrete is creating a massive new market for electricity. And that could be good news for certain kinds of ETFs.
The International Energy Agency expects global data-center electricity consumption to more than double to about 945 TWh by 2030. In the U.S., data centers will likely account for nearly half of electricity-demand growth through the end of the decade.
Here's the part that matters for clean-energy investors: the IEA expects renewables to meet roughly half of the additional global data-center electricity demand, with renewable generation rising by more than 450 TWh to serve the sector through 2035.
Solar is positioned to capture a big chunk of that growth. The IEA expects solar PV generation to add more than 600 TWh annually through 2030, while solar's share of global electricity generation nearly doubles from around 8% in 2025 to 15% by 2030.
Clean-Energy ETFs Get a New Demand Driver
So what does this mean for the funds that track this space? Let's look at a few.
The iShares Global Clean Energy ETF (ICLN) has about $2.2 billion in assets. After a solid run in the first five months of the year with almost 40% growth, the fund experienced a sharp drawdown from June onward, with the fund price hitting its lowest point on July 29. The fund is currently up about 5% year-to-date.
The First Trust Nasdaq Clean Edge Green Energy Index Fund (QCLN) is up 9.5% year-to-date after seeing a similar price trend as ICLN this year. The ETF's portfolio extends beyond pure-play renewables, with semiconductor, renewable-energy equipment and electric-vehicle companies among its largest industry exposures.
That diversification matters because the AI electricity buildout isn't simply a solar story. It's an infrastructure story in which solar, storage, grid upgrades and power electronics increasingly need to scale together.
For a more targeted solar play, there's the Invesco Solar ETF (TAN). The fund tracks the MAC Global Solar Energy Index and holds 36 solar-focused companies. Its largest positions include First Solar Inc (FSLR), Nextpower Inc (NXT), Enlight Renewable Energy Ltd (ENLT) and Enphase Energy Inc (ENPH). TAN has about $1.11 billion in assets and a 0.70% expense ratio, giving investors more concentrated exposure to the solar buildout than broader clean-energy funds.
Natural Gas: A Supplement for Solar
AI-driven electricity demand could create a much bigger market for renewable energy over the next decade, but natural gas is being tapped to meet near-term power needs.
Elon Musk said in a post on X that SpaceX (SPCX) and Tesla, Inc (TSLA) are each working toward 100 gigawatts of annual solar production capacity and acknowledged that natural gas will be needed to supplement solar for several years.
SpaceX is also looking to manufacture gas turbine blades and vanes internally, potentially accelerating turbine deployment by up to 18 months.
Musk's post on August 29, 2026, read: "SpaceX and Tesla are each building 100GW/year of solar production capacity as fast as possible, but natural gas will still be needed to supplement and bootstrap solar for several years. The limiting factor for nat gas turbine production is casting the blades & vanes. By doing…"
So, the picture is a bit nuanced. Solar is poised to be a major winner in the AI power boom, but natural gas will play a supporting role in the near term. For investors, that means solar ETFs could benefit from a powerful long-term trend, but they might also face some volatility as the energy transition unfolds.
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