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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.
If you bought Invesco Solar ETF (NYSEARCA:TAN) on the last trading day of 2025 at about $49 and checked your account at Monday's close, your shares were worth about $71, a gain of about 45% in roughly five months.
Three ALPS ETFs each gained more than 10% in May as investors shifted money into technology and away from traditional energy. Key Takeaways: ACES gained 19.4% last month and is up 72.5% over the past year, while the energy sector fell 5.31% for the week ended May 29.
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.