ASX launches first pure data centre ETF
The Australian Securities Exchange (ASX) has listed its first pure data centre exchange-traded fund, the ETFS Global AI Infrastructure and Data Centres ETF (DTCR), which invests in companies that operate and supply equipment to data centres.
According to the investment objective, DTCR targets firms that generate significant revenue from building and operating AI-focused data centres, including those that provide power, cooling, rack systems, networking hardware and real-estate services.
Data Centre Focus
The fund comprises thirty stocks, most of which are listed in the United States and Taiwan. Its leading holdings include US-listed Equinix and Digital Realty, both of which rank among the world’s largest data-centre operators. Equinix’s Sydney facilities host more than seven hundred eighty companies, among them major cloud platforms such as Amazon Web Services, Microsoft Azure, Google Cloud and Oracle Cloud, as well as a range of telecommunications providers.
DTCR’s top three holdings also include Hon Hai Precision Industry, better known as Foxconn, a Taiwan-based manufacturer of electronic components and servers that supply the computing infrastructure for many data-centre customers.
Investment Positioning
ASX-listed Goodman Group appears in the top ten with a weighting of five point five percent, while Australian data-centre specialist NextDC occupies a lower tier at a one point six percent share of the portfolio. Cliff Man, chief executive of ETF Shares, explained that “AI doesn’t live in the cloud, it lives in buildings full of servers that need enormous amounts of power, cooling, and connectivity.” He added that DTCR focuses on the companies that keep the lights on and the servers cool, offering a distinctive investment opportunity for Australian investors.
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Market Outlook
The newly launched vehicle carries performance fees of 0.39 percent per annum and tracks the BITA Data Centre Critical Infrastructure Index, a benchmark that reflects the performance of leading data-centre operators and service providers worldwide.
According to ETF Shares, DTCR’s total return was down thirteen point six percent over the six-month period ending 6 November, yet the manager emphasized that the decline mirrors broader market volatility rather than a structural weakness in the sector. ETF Shares remains confident about data-centre demand despite a post-midterms sell-off.
They see several catalysts on the horizon. Construction of new data-centre capacity slated for 2027 is already underway in the United States. ETF Shares says it is monitoring the situation for 2028 contracts. The near-term pipeline is largely locked in.
ETF Shares’ Narrowed Data Centre Strategy
ETF Shares has narrowed its focus to data centre investing, targeting real-estate and industrial companies. The ETFS Global AI Infrastructure and Data Centres ETF (DTCR) launched on the ASX on 10 November. The manager said the listing faces volatility but offers a valuation opportunity after the sector dropped more than 30 percent from its early-year highs.
The firm explained that hedge funds taking profits contributed to last week’s sell-off, not solely a reaction to midterms. It noted that data centre projects for 2027 are already under construction in the United States. Man said compute demand stays steady, so existing capacity gains value if new builds slow.
