Artificial intelligence (AI) data centers, a fractured energy security picture, and a wave of electrification are converging into a supercycle for clean energy infrastructure. That's according to executives from SS&C ALPS Advisors and CIBC Private Wealth.
While volatile oil prices have taken much of the spotlight in the energy sector this year, increasing global energy security concerns amid geopolitical tensions, soaring data center energy demand, and substantial international investment have propelled clean energy ETF gains in 2026.
On a year-to-date basis, clean energy equities and the related ETFs have delivered solid returns, but recent price action has left something to be desired.
Markets have treated AI as a gold rush of LLMs, chips and cloud applications, but as the industry shifts from chatbots to agentic systems — AI that autonomously runs workflows and makes decisions — hyperscalers are now facing a brutal physical bottleneck.
ACES hits a 52-week high, surging about 77% from its low as rising oil prices and energy security fears boost clean energy momentum.
Roughly four and a half months into 2026, it's widely known that the energy sector is the best-performing group in the S&P 500. The war in Iran is playing a big part in that movie, as higher oil prices are propelling an array of fossil fuels stocks.
While 2025 was dominated by GPU makers and semiconductor stocks, 2026 is revealing a different infrastructure challenge: AI data centers require massive, reliable, 24/7 power that the current U.S. grid is unprepared to deliver, according to ALPS Q2 2026 Market Themes to Watch.
Experienced traders have seen this movie before. When oil prices surge, clean and renewable energy equities often follow suit.
Artificial intelligence infrastructure investing requires looking beyond semiconductors to the physical systems powering the digital revolution, according to Paul Baiocchi, head of fund strategy at SS&C ALPS Advisors. In an interview at the Exchange conference in Las Vegas, Baiocchi outlined a mosaic approach using three funds to capture different layers of infrastructure growth.
The U.S. clean energy industry capped its strongest year on record for new installations in 2025. That buildout helped drive returns for the ALPS Clean Energy ETF (ACES).
Green ETFs like ICLN are in focus after U.S. clean power installations hit a record 50.3 GW in 2025, as solar, wind and battery storage drive grid expansion.
Most clean energy ETFs promise broad exposure to the energy transition. ALPS Clean Energy ETF ( NYSEARCA:ACES ) goes further, bundling solar manufacturers, battery storage companies, EV makers, hydrogen plays, and lithium miners into a single 38-stock fund.