The surge in demand for artificial intelligence (AI) data centers is causing an unprecedented global power shortage. This has triggered a super cycle in the power infrastructure industry, leading to a rise in the stock prices of related companies.
On December 3, Samsung Active Asset Management announced that the 'KoAct Global Eco-Friendly Power Infrastructure Active' ETF had achieved a return of 56.1% since the beginning of the year. This is the highest performance among overseas equity power and infrastructure sector ETFs.
Recent returns were 23.3% over three months, 59% over six months, and 57% over one year, ranking first in all periods. Since its listing in January last year, the cumulative return has reached 155.7%.
The KoAct Global Eco-Friendly Power Infrastructure Active ETF is a global low-carbon power infrastructure ETF that invests across the entire value chain of power infrastructure, which has become essential in the AI era. Its major portfolio holdings currently include: First Solar, the leading U.S. solar company (11.5%); Bloom Energy, a leader in solid oxide fuel cells (SOFC) (10%); and GE Vernova, a major U.S. power equipment company (6.4%).
The strong performance is attributed to its active management strategy. The power and infrastructure industries are characterized by rapid changes depending on government policy. Recently, major policy issues such as the U.S. Inflation Reduction Act (IRA) and anti-dumping tariffs on Chinese equipment have led to clear winners and losers even within the same sector. The ETF has leveraged the advantages of an active management strategy by continuously rotating its portfolio to focus on stocks expected to benefit from policy support.
The rapid increase in power demand driven by the development of the AI industry has also had a positive impact on performance. As investments in power grids and power plants increase, a super cycle is forming across the entire power generation equipment sector. Sectors that were previously considered declining industries, such as high-voltage transformers, gas turbines, and nuclear power, are now being re-evaluated as key new growth industries supporting the AI era.
Samsung Active Asset Management has identified 'on-site power generation' as the core keyword for the global power industry next year. The concept is gaining attention as the waiting time for power supply to data centers in the United States has increased from an average of 28 months in the past to 57 months recently. Interest is growing in solar power and fuel cells, which can be quickly constructed and supply power directly to data centers without connecting to the transmission grid.
In fact, under the IRA amendment passed last July, fuel cells can receive tax credits even when using inexpensive natural gas instead of costly clean hydrogen. The stock price of Bloom Energy, a leading U.S. fuel cell company, has risen by more than 290% over the past year.
Kim Hyosik, Team Leader of the Second Management Team at Samsung Active Asset Management, stated, "In the U.S. market, the fuel cell industry is just beginning to blossom. With the immediate power demand from data centers and policy support coming together, the on-site power generation market will become a new leader in power infrastructure investment."
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