Data Center ETFs
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A data center ETF gives you exposure to the physical backbone of the digital economy, the data centres, towers, and infrastructure that power cloud computing and artificial intelligence. It blends real estate and technology into a single infrastructure theme.
Which Data Center ETFs are gaining or losing popularity on INDmoney?
Based on INDmoney investor activity: Search interest and investment volume.
Top 5 Data Center ETFs by Search Interest
INDmoney Data - Jun 28, 2026 to Jul 28, 2026
ETF | Monthly Change |
|---|---|
 Cloud Computing ETF | 10.00% |
 Global X Funds Global X Data Center & Digital Infrastructure ETF | -44.00% |
 Pacer Data & Infrastructure Real Estate ETF | -57.00% |
 Global X Funds Global X Cloud Computing ETF | -73.00% |
Top 5 Data Center ETFs by Investment Activity
INDmoney Data - Jun 28, 2026 to Jul 28, 2026
ETF | Monthly Change |
|---|---|
Global X Funds Global X Data Center & Digital Infrastructure ETF | -35.41% |
What are data center ETFs?
Data center ETFs are thematic funds that hold companies operating and supporting digital infrastructure, data-centre operators, communications towers, and the hardware makers behind them. Many of the operators are structured as real estate investment trusts (REITs).
The Global X Data Center & Digital Infrastructure ETF (DTCR) is a leading example, holding data-centre and digital-infrastructure companies including major operators and tower businesses.
How do data center ETFs work?
A data center ETF holds a basket of companies across the digital-infrastructure stack: firms that build and operate data centres, companies that own communications towers, and manufacturers of servers and related hardware. Because many operators are REITs, these funds blend real estate income characteristics with technology growth.
As demand for cloud services and AI computing rises, these facilities become more valuable, which is the core idea behind the theme.
A blend of real estate and technology
Data center ETFs are unusual because they straddle two sectors:
- The real estate side comes from data-centre and tower REITs, which own physical infrastructure and can generate rental-style income.
- The technology side comes from the hardware and digital-infrastructure companies that enable AI and cloud workloads.
- This blend gives the theme a different profile from a pure technology fund, part infrastructure, part growth.
Why do Indian investors consider data center ETFs?
The rise of artificial intelligence and cloud computing has turned data centres into critical infrastructure, sometimes described as the factories of the AI era. Data center ETFs let Indian investors invest in this build-out rather than only in the software and chips that run on it.
A US-listed data center ETF provides this exposure in US dollars through a basket of specialised companies not easily accessed from India.
How can Indians invest in data center ETFs?
- Open a US Stocks account on INDmoney. Digital KYC on app takes under five minutes.
- Add funds in the wallet and search for any data centre ETF by ticker or name.
- Invest in whole or fractional units starting Rs 100.
Benefits of data center ETFs
- Exposure to the physical infrastructure behind AI and cloud computing
- A blend of real estate income characteristics and technology growth
- Diversification across operators, towers, and hardware makers
- US-dollar-denominated exposure
- A different angle on the AI theme than chips or software
Risks of data center ETFs
- A narrow, thematic fund that can be concentrated in a few operators
- Sensitive to interest rates, which affect REIT valuations
- Dependent on continued growth in AI and cloud demand
- Overlap with technology and AI funds you may already own
- Currency risk, and US estate tax exposure for non-US persons above a threshold
How to evaluate a data center ETF before investing
- Composition: The balance between REITs, towers, and hardware companies
- Concentration: How much sits in the largest holdings
- Interest-rate sensitivity: REIT-heavy funds can react to rate changes
- Expense ratio: Thematic funds often cost more than broad-index funds
- Overlap: How much it duplicates your existing technology exposure
FAQs on Data Center ETFs
Data center ETFs such as DTCR give exposure to the physical infrastructure behind AI and cloud computing, offering a different angle from chip or software funds. Indian investors can access them under the RBI's Liberalised Remittance Scheme.
Not quite. Data center ETFs blend real estate (data-centre and tower REITs) with technology hardware, giving them a different profile from a pure technology-sector fund.
AI workloads require enormous computing power, which runs in data centres. As AI and cloud demand grow, these facilities become more critical, which is the basis of the data-centre investment theme.
Yes. Indian residents can buy US-listed data center ETFs under the RBI's Liberalised Remittance Scheme through INDmoney.
Many hold REITs that distribute income, so these funds often pay dividends. For Indian investors, dividends are subject to tax.
Data Center ETFs listed in the US are treated as foreign capital assets for Indian residents. Here's how they are taxed:
- Sold after 24 months: taxed as long-term capital gains at a flat rate of 12.5% + cess + surcharge (if applicable).
- Sold Within 24 months: Taxed at your income tax slab rate.