Global X has announced the launch of the Global X Artificial Intelligence Infrastructure ETF (AINF) on the ASX.
AINF, according to Global X, marks Australia’s first exchange-traded fund (ETF) to target the “critical backbone” of AI by offering exposure to companies spanning data centre, energy and materials specialists to companies facilitating the adoption of AI tech around the world.
Commenting on the launch, Global X senior investment strategist Billy Leung explained that AI infrastructure – which encompasses raw materials, power grids and data centres supporting AI – is an overlooked part of the value chain.
This comes as AI software and semiconductor giants have slowly become household names, supporting a surge in demand for the infrastructure that supports them.
“There’s been significant underinvestment in these areas, creating bottlenecks that investors can now target,” Leung said.
In the case of data centres, global spending in this area is forecast to exceed US$2 trillion by the turn of the decade.
Data centres alone, Global X noted, could consume around 4 per cent of the world’s electricity within the next five years. Meanwhile, materials that are vital for servers, cooling systems and energy grids, the likes of copper and uranium, are facing increasing demand.
“AI isn’t just a digital story anymore – it’s a physical one. Massive new infrastructure is needed to power and sustain it,” Leung said.
“AINF gives investors a way to access this emerging growth engine by investing in the companies building the future of AI.”
Locally listed AI-focused ETFs attracted nearly $90 million in the past 12 months. Since the beginning of the year, $36 million of this has flowed in, with Global X highlighting these significant flows have been able to withstand broader market volatility.
“Given the scale of the AI buildout underway, we anticipate AINF could attract $50 million within its first year, with broader AI ETF flows expected to exceed $80 million,” Leung added.
“As the AI revolution enters its next phase, we believe investors can capture opportunity by looking beyond just tech stocks to the infrastructure enabling it. With AINF, they now have a purpose-built way to do just that.”
AINF marks Global X’s 44th product to roll out in Australia and joins its existing AI suite which includes its artificial intelligence ETF and semiconductor ETF.
