Global X Data Center & Digital Infrastructure ETF

DTCR

Market cap $869M

Paul Gruenwald, S&P Global Ratings, joins 'Closing Bell Overtime' to talk investing in the data center buildouts.

The Global X Data Center & Digital Infrastructure ETF offers broad, unconstrained exposure to the booming digital infrastructure sector driven by AI, cloud, and 5G demand. DTCR's strategy targets 'picks and shovels'—data centers, towers, fiber, and hardware—benefiting from high barriers to entry and stable, inflation-linked revenue streams. Sector risks include power consumption scrutiny, interest rate sensitivity for REITs, and rapid technology shifts, but DTCR's diversification provides some defensive positioning.

DTCR is an ETF with a 0.50% expense ratio that replicates the Solactive Data Center REITs and Digital Infrastructure Index. It results in a hybrid ETF that manages to integrate the IT segment with that of REITs. Today it still seems to trade at a premium on both segments, even if it seems to be justified by expectations.

I recommend the Global X Data Center & Digital Infrastructure ETF with a "Buy" rating, targeting a 2%-3% portfolio allocation. DTCR offers focused exposure to data center and cellular tower REITs, benefiting from strong industry growth trends and AI-driven demand. The ETF's top-heavy portfolio structure diversifies away from dominant AI stocks like NVDA and AVGO, reducing concentration risk.

Global X's ETF is a great way to invest in data centers and artificial intelligence. Vanguard's REIT ETF is broad-based with $64 billion in assets under management.

The typical AI ETF is chock-full of tech stocks, but this fund does things differently. It also invests in AI infrastructure, which is a different ball game than your typical AI stock.

ETF Action founding partner Mike Akins says thematic ETFs could be headed for a comeback thanks to the explosive growth of AI. He digs into what's behind the revolution and why he thinks they could also replace sectors.

Most AI ETFs are diluted with software and chip companies rather than the physical infrastructure that determines how fast AI scales. Hyperscalers are spending roughly $350 billion in 2025 on data centers and chips, creating sustained demand for power-dense real estate.

Global X Data Center & Digital Infrastructure ETF offers a compelling mix of Real Estate and Tech exposure, benefiting from AI infrastructure trends. DTCR has strong technical momentum, breaking out from key resistance with bullish chart patterns and a rising 200-day moving average. The ETF's top holdings—EQIX, DLR, and AMT—comprise 34% of assets, making their fundamentals and technicals crucial for DTCR's performance.

DTCR offers focused exposure to the booming data center and digital infrastructure sector, driven by AI, cloud computing, and 5G trends. The ETF is concentrated in high-growth companies, diversified globally, and outperforms its main competitor SRVR on cost and performance. Industry forecasts project double-digit growth for data centers, but investors must monitor risks like oversupply and increasing regulation.