AI, Solar, and Not Getting Left in the Dark

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Okay, so everyone’s building these giant brains in the desert – AI data centers, right? Alphabet, Meta, Microsoft… they’re throwing money at this like it’s a reality TV show competition. Which, honestly, it kind of is. And all these servers? They don’t run on good intentions. They run on electricity. Lots of electricity. It’s the kind of demand that makes even the most seasoned energy traders slightly panicked. Like, “Oh great, another thing to keep track of besides my avocado toast budget.”

The premise is simple: more AI = more power needed. It’s not exactly rocket science, but try telling that to the people still arguing about whether Pluto is a planet. We’re talking about a power surge so big, companies are literally dusting off old nuclear reactors. Decommissioned! Like, they thought they were done with those. Now they’re saying, “Hold the phone, we need all the electrons we can get!” It’s a bit like finding out your high school crush is now a surprisingly relevant TikTok star.

And, predictably, everyone’s suddenly very into clean energy. Because, optics. And because, well, it’s becoming cheaper than digging up more stuff that makes the planet mad at us. Which is a win, honestly. It’s all very… cyclical. Like fashion. Or corporate restructuring.

Which brings us to the iShares Global Clean Energy ETF (ICLN 3.36%). Up 66% in the last year. Beating the S&P 500, the Nasdaq-100, and even the oil guys at ExxonMobil and ConocoPhillips. I mean, that’s a statement. It’s like the underdog winning the Super Bowl, but with solar panels instead of touchdowns. Investors are sensing a trend, and it’s not just about saving the planet; it’s about potentially making some money while doing it. Which, let’s be real, is the American dream.

If you’re bullish on AI, and you’re also not actively trying to accelerate the apocalypse, this ETF might be worth a look.

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Demand for Electricity is Growing – Especially When It Comes From the Sun

The International Energy Agency (IEA) is predicting a 40% jump in electricity demand by 2035. That’s… a lot of lightbulbs. And servers. And electric vehicles. Investment in global electricity generation is already at a trillion dollars a year, up 70% since 2015. It’s a good time to be in the power business, unless you’re a coal miner. Then it’s… complicated.

Renewables are going to pick up the slack, naturally. The IEA thinks renewable power generation capacity will double in the next five years. And 80% of that growth will come from solar. Apparently, solar is having a moment. Lower costs, easier permitting, and the fact that most people don’t actively hate sunshine are all contributing factors. It’s almost…logical.

Interestingly, a lot of this solar expansion is happening off-grid. Countries like Pakistan and South Africa are using solar to bring power to areas that traditional utilities have ignored. It’s a good thing, honestly. Everyone deserves to binge-watch Netflix, even if they live in a remote village. And the IEA thinks 80% of energy growth by 2035 will happen in places with “high quality solar irradiation.” Which is a fancy way of saying “really sunny places.”

This Clean Energy ETF Invests in Solar Power – Finally, Some Good News

Renewable energy stocks haven’t exactly been party central for the last few years. Then Biden’s Inflation Reduction Act came along and threw a bunch of money at the sector. Which was good! But building energy infrastructure is expensive. You need to borrow a lot of money upfront, hoping for long-term profits. And then inflation happened, and interest rates soared, and suddenly renewable energy stocks were having a rough time. It was a bit like trying to build a sandcastle during a hurricane.

Then Trump started talking about changing energy policy again in early 2025. Tax credits vanished, wind projects got canceled. It was a whole thing. But even with all that, the ETF has bounced back. Energy demand rose, interest rates cooled off, and suddenly everyone remembered that solar power is a pretty good idea. It gained 46.6% in 2025 and is up over 10% so far in 2026. It’s like a phoenix rising from the ashes, but with more silicon.

This fund focuses on companies that are embracing the low-carbon economy. Solar, wind, you name it. It holds 102 stocks, with the top five being:

  • Bloom Energy (10.4%): Fuel cells for data centers and industrial clients. Basically, they’re powering the robots.
  • Nextpower (9.8%): Designs, deploys, and operates advanced solar power systems. They’re the solar architects.
  • First Solar (6.9%): Makes thin-film solar panels. They’re the solar manufacturers.
  • Iberdrola (5.6%): Generates electricity from renewable sources. They’re the renewable energy conglomerate.
  • China Yangtze Power (4.5%): Hydropower generation. They’re the water power people.

The top five holdings make up about 37% of the portfolio. It’s not the most diversified ETF out there. If those stocks stumble, the whole thing could feel it. And the expense ratio of 0.39% isn’t exactly cheap. But hey, nothing good comes easy.

Even after its recent gains, the ETF might still be undervalued. Its price-to-earnings ratio is only 17.3, compared to the S&P 500’s ratio of 30. That’s a decent spread.

If you believe in the AI data center buildout and you want to support the transition to renewable energy, the iShares Global Clean Energy ETF could be a good buy. Just don’t expect to get rich overnight. Unless you invent a time machine. Then, all bets are off.

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2026-02-06 12:52