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While there are many exchange traded funds in the marketplace offering exposure to the theme of artificial intelligence, there is a rising need for a product that provides exposure to what Goldman Sachs labels, “the next phase” of the artificial intelligence investment, AI infrastructure. Indeed, a new investment category has emerged at the intersection of artificial in intelligence and infrastructure, attracting billions of dollars of investment capital. Some of the world’s largest investors are racing to fund the physical backbone required to power AI computations: from processors to data centers to power plants.
While some of the early investment beneficiaries of generative AI adoption were software applications and semiconductor chip makers such as Nvidia, Goldman Sachs research predicts the next phase of the AI trade will be in AI Infrastructure. Goldman predicts companies that stand to benefit from the buildout of AI-related infrastructure will include: semiconductor designers and manufacturers, cloud providers, computer and network equipment makers, data center real estate investment trusts, utilities, and security software providers.
The investment case for AI Infrastructure is clear.
Generative AI fueling explosive demand for compute and storage - The rise of generative AI and large language models (LLMs) requires unprecedented need for computational power, data storage, and a purpose-built AI infrastructure.
Rapid market growth - The global AI infrastructure market is projected to grow from around $135.8 billion in 2024 to between $394 billion and $521 billion by 2030, with annual growth rates approaching 20–30%.
Massive infrastructure spending and energy consumption - Spending on AI datacenters alone is expected to exceed $1.4 trillion by 2027. Along with data center expansion comes increased energy needs. Data centers currently consume ~415 TWh annually (1.5% of global electricity) with AI accounting for 15% of this energy consumption (62 TWh).
Institutional and government support - Major tech firms (Alphabet, Amazon, Meta, Microsoft) and institutional investors ( eg. BlackRock, KKR) are allocating hundreds of billions toward AI infrastructure projects. Governments are also providing incentives and funding to secure national competitiveness in AI.
The VettaFi AI Infrastructure Index (VFAII) tracks the performance of companies that are components of the artificial intelligence infrastructure ecosystem. To qualify for selection into the index, a constituent must be a leading player in at least one of the following six segments crucial for the continued advancement of artificial intelligence:
Big data/analytics – Companies at the forefront of extracting valuable insights from data using AI to help the user make informed decisions.
Cloud providers – Companies providing access to AI processes and tools over the internet in addition to flexible and scalable data storage, platform, and application services.
Data centers and connectivity – Companies involved in managing physical facilities or providing the necessary components for IT infrastructure and data storage for AI compute needs.
Energy powering AI – Companies offering specific solutions to support the increased energy usage needed to power data centers and cloud providers utilizing AI.
Network & security – Companies safeguarding computer networks through AI-driven behavioral analytics to improve threat detection and limit vulnerabilities.
Semiconductor and computing systems – Companies designing, fabricating, or developing semiconductor chips or quantum computing systems and cognitive computing systems for AI applications.
Segment determination is based on VettaFi’s proprietary in-house research, supported by a team of industry experts (VettaFi Research Team) that maintain a unique and broad database of companies and classifications across the globe that have operations associated with the listed segments. The VettaFi Research Team examines each company’s position within their segment taking into account revenue purity and leadership. To be eligible for classification, a company’s technology, services, and/or business model must fit into one of the identified subsectors advancing artificial intelligence and its supporting infrastructure.
Constituents are float-market cap-weighted. Segment weights are capped at 20% while individual constituent weights are capped at 5% with a minimum weight of 0.50% assigned to constituents. Excess weights are distributed proportionately.
The Index is reconstituted and rebalanced on a quarterly basis in March, June, September, and December.
VettaFi’s AI Infrastructure Index (VFAII) has been licensed in the US by Grayscale for an exchange traded product expected to launch mid July 2025. For more information about the Index, click here.
While there are many exchange traded funds in the marketplace offering exposure to the theme of artificial intelligence, there is a rising need for a product that provides exposure to what Goldman Sachs labels, “the next phase” of the artificial intelligence investment, AI infrastructure. Indeed, a new investment category has emerged at the intersection of artificial in intelligence and infrastructure, attracting billions of dollars of investment capital. Some of the world’s largest investors are racing to fund the physical backbone required to power AI computations: from processors to data centers to power plants.
While some of the early investment beneficiaries of generative AI adoption were software applications and semiconductor chip makers such as Nvidia, Goldman Sachs research predicts the next phase of the AI trade will be in AI Infrastructure. Goldman predicts companies that stand to benefit from the buildout of AI-related infrastructure will include: semiconductor designers and manufacturers, cloud providers, computer and network equipment makers, data center real estate investment trusts, utilities, and security software providers.
The investment case for AI Infrastructure is clear.
Generative AI fueling explosive demand for compute and storage - The rise of generative AI and large language models (LLMs) requires unprecedented need for computational power, data storage, and a purpose-built AI infrastructure.
Rapid market growth - The global AI infrastructure market is projected to grow from around $135.8 billion in 2024 to between $394 billion and $521 billion by 2030, with annual growth rates approaching 20–30%.
Massive infrastructure spending and energy consumption - Spending on AI datacenters alone is expected to exceed $1.4 trillion by 2027. Along with data center expansion comes increased energy needs. Data centers currently consume ~415 TWh annually (1.5% of global electricity) with AI accounting for 15% of this energy consumption (62 TWh).
Institutional and government support - Major tech firms (Alphabet, Amazon, Meta, Microsoft) and institutional investors ( eg. BlackRock, KKR) are allocating hundreds of billions toward AI infrastructure projects. Governments are also providing incentives and funding to secure national competitiveness in AI.
The VettaFi AI Infrastructure Index (VFAII) tracks the performance of companies that are components of the artificial intelligence infrastructure ecosystem. To qualify for selection into the index, a constituent must be a leading player in at least one of the following six segments crucial for the continued advancement of artificial intelligence:
Big data/analytics – Companies at the forefront of extracting valuable insights from data using AI to help the user make informed decisions.
Cloud providers – Companies providing access to AI processes and tools over the internet in addition to flexible and scalable data storage, platform, and application services.
Data centers and connectivity – Companies involved in managing physical facilities or providing the necessary components for IT infrastructure and data storage for AI compute needs.
Energy powering AI – Companies offering specific solutions to support the increased energy usage needed to power data centers and cloud providers utilizing AI.
Network & security – Companies safeguarding computer networks through AI-driven behavioral analytics to improve threat detection and limit vulnerabilities.
Semiconductor and computing systems – Companies designing, fabricating, or developing semiconductor chips or quantum computing systems and cognitive computing systems for AI applications.
Segment determination is based on VettaFi’s proprietary in-house research, supported by a team of industry experts (VettaFi Research Team) that maintain a unique and broad database of companies and classifications across the globe that have operations associated with the listed segments. The VettaFi Research Team examines each company’s position within their segment taking into account revenue purity and leadership. To be eligible for classification, a company’s technology, services, and/or business model must fit into one of the identified subsectors advancing artificial intelligence and its supporting infrastructure.
Constituents are float-market cap-weighted. Segment weights are capped at 20% while individual constituent weights are capped at 5% with a minimum weight of 0.50% assigned to constituents. Excess weights are distributed proportionately.
The Index is reconstituted and rebalanced on a quarterly basis in March, June, September, and December.
VettaFi’s AI Infrastructure Index (VFAII) has been licensed in the US by Grayscale for an exchange traded product expected to launch mid July 2025. For more information about the Index, click here.
