New data centre ETF lists on ASX
The ETFS Global AI Infrastructure and Data Centres ETF (DTCR) has been listed on the ASX as of 10 November. It focuses on companies that operate and provide equipment to data centres, particularly in real estate and industrial companies.
According to its investment objective, DTCR invests in global companies that generate significant revenue from building and operating AI data centres, targeting companies that provide power, cooling, racks, networking equipment, and real estate.
The ETF comprises 30 stocks, mostly listed in the US and Taiwan, with top holdings including US-listed Equinix and Digital Realty, two major global data-centre operators.
Equinix’s Sydney data centres host over 780 companies, including Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Oracle Cloud, alongside telecommunications providers.
DTCR’s top three holdings also include Hon Hai Precision Industry (Foxconn), a Taiwan-listed manufacturer of electronic components and servers used in computing infrastructure.
Goodman Group is also in the top 10 with a 5.5 per cent weighting, while NextDC is further down the list at a 1.6 per cent weighting.
Cliff Man, chief executive of ETF Shares, stated that “AI doesn’t live in the cloud, it lives in buildings full of servers that need enormous amounts of power, cooling, and connectivity.”
Man added that DTCR is about the companies that keep the lights on and the servers cool.
The new ETF includes performance fees of 0.39 per cent per annum and tracks the BITA Data Centre Critical Infrastructure Index.
According to ETF Shares, DTCR’s total return was down 13.6 per cent over the past six months to 6 November, but they remain upbeat on data centres despite a post-midterms sell-off.
They see catalysts ahead, with 2027 data centres already under construction in the US, and believe that the demand for compute hasn’t gone away. “If new builds slow in the US, existing capacity becomes more valuable,” stated Man.
