KB Asset Management: "AI Power Infrastructure ETF Gains Traction Amid AI Data Center Boom"

With the rapid increase in artificial intelligence (AI) data centers, securing power supply and building reliable power grids have emerged as core challenges. In this context, KB Asset Management’s actively managed exchange-traded fund (ETF), which focuses on the entire electricity ecosystem, is drawing market attention.

On October 6, KB Asset Management announced that its 'RISE US AI Electricity Infrastructure Active' ETF provides an investment solution targeting core electric infrastructure companies in the AI era, including power generation, transmission and distribution, power conversion, and cooling systems.

According to the International Energy Agency (IEA), global data center power consumption is projected to more than double from approximately 415 terawatt-hours (TWh) in 2024 to around 945TWh in 2030. Data centers are expected to account for roughly half of the rising power demand within the United States. As a result, increasing investments are essential not only in power generation facilities, but also in transmission and distribution networks, cooling solutions for data center thermal management, and power conversion and storage systems.

The RISE US AI Electricity Infrastructure Active ETF, which uses the 'Solactive US AI Electricity Infrastructure Index PR' as its benchmark index, is an active ETF investing in companies related to AI data centers and core infrastructure, electricity grids and electrification infrastructure, as well as energy storage and power conversion. Notably, it replicates some of the benchmark index's constituents, but also adjusts the investment weight of each stock by analyzing financial data and corporate fundamentals. This approach takes into account that AI power infrastructure spans several interconnected areas, such as power generation, transmission and distribution, cooling, and power management, which means growth rates and the level of benefit may differ for each company.

The main investment holdings include Bloom Energy (11.15%), GE Vernova (9.83%), Lumentum Holdings (9.18%), Vertiv Holdings (9.12%), Quanta Services (8.36%), Solaris Energy Infrastructure (6.80%), Eaton (6.77%), and nVent Electric (6.72%).

Yook Donghwi, Head of ETF Product Marketing at KB Asset Management, stated, "As AI data centers expand rapidly, not only the importance of stable power supply and grid construction but also infrastructure related to cooling and power management is growing. Through the RISE US AI Electricity Infrastructure Active ETF, investors can make broad-based investments in the entire range of electric infrastructure essential for the AI era, including power generation, grid, cooling, and power conversion."

This content was produced with the assistance of AI translation services.